2. A firm Kappa Industries is a very young business, which is growing rapidly and to which intangible assets are very important. In contrast, another firm Gorgeous Food, whose business is profitable and stable, but has limited growth opportunities and most of its assets are tangible. With this setup, answer the following questions. a) Assuming that the predictions of the pecking order theory hold, which firm should have a higher payout ratio? Explain concisely why. b) Assuming that the predictions of the trade-off theory hold, which firm should have a higher debt-equity ratio? Explain concisely why.