Discussion: Debt FinancingDo not use the banking financial services industries.Based on the types of firms that use a small amount of debt and those that use higher amounts of debt, what can you conclude?What can you conclude about the firms that use low amounts of debt?More debt would lower their cost of capital so what is holding these firms back from taking on more debt?You need to think a little. Do not simply say the firms with low debt are all in industry X or industries similar to X; that is obvious. What is the economic intuition? What is the story?File is attached.
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