Trade-off theory gives numerous insights to financial managers concerning optimal capital structure. Which of the given statements is false?
a. Other things equal, firms with large amounts of marketable fixed assets must utilize more debt financing than firms whose value stems mostly from intangible assets.
b. Other things equal, firms with high corporate tax rates must utilize less debt financing than firms with low tax rates.
c. Other things equal, firms with high business risk must utilize less debt financing than firms with low business risk.