QUESTION 4 Which of the following statements concerning the capital structures of Japanese companies is correct? O a. Debt monitoring costs are extremely high in Japan. b. Companies in Japan raise most of their funds using publicly-issued corporate bonds. c. Companies in Japan use greater proportions of debt than companies in most other countries The capital structures of most Japanese companies contain little debt that is issued in Japan; that is, most firms are O financed with foreign debt. e. Companies in Japan are financed nearly entirely with equity. QUESTION 5 Which of the following statements is correct? O a. In countries where capital gains are not taxed, equity capital costs should be high. b. In countries where dividends are not taxed, the investors should prefer to own bonds rather than stocks, OC. In countries where there are no taxes, corporations should use debt. d. In countries where capital gains are not taxed, investors should prefer to own stocks rather than bonds. e. In countries where capital gains are taxed, investors should prefer to own stocks rather than bonds. Which of the following statements is true of the capital structure of companies in Germany? a. Companies in Germany use the lowest proportion of debt of industrialized countries. Ob. Companies in Germany raise most of their corporate debt through bank loans. O c. The corporate debt raised by companies in Germany mostly consists of publicly issued bonds. d. Debt monitoring costs are high in Germany because of stringent audit requirements. e. Companies in Germany use only equity to finance their projects