Firm A and Firm B currently have $200 million in capital structure. Firm A has 70% debt in its capital structure, and Firm B has 20% debt in its capital structure. Both firms are in the same industry and market their products to the same customers. Also, both businesses are stable and both firms need to raise an additional $40 million in capital. Which firm will find it relatively easy to raise capital through debt issue at a reasonable interest cost? Firm B, because it has higher debt capacity Firm B, because it has same type of customers Firm A, because it has 70% debt Firm A, because it has higher debt capacity