16.8 The electric utility has the most stable cash flow. It also has the highest reliance on...

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16.8 The electric utility has the most stable cash flow. It also has the highest reliance on tangible assets that would not be impaired by a bankruptcy. It should have the highest debt ratio. The software firm has the least dependence on tangible assets and the most on assets that have value only if the firm continues as an ongoing concern. It probably also has the most unpre- dictable cash flows. It should have the lowest debt ratio.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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