Among the following three industries, car manufacturer, internet content & information, and discount shops, which one do you think is more likely to use the highest financial leverage and which one the lowest? Why? Which industries stocks are more likely to enjoy high valuation? (market timing theory) Which industries have more growth potential in the future? (borrowing capacity) Which industries have more stable cash flows (thus be able to afford more debt)? Which industries are likely to have more assets to be used as collaterals?