I need help discussing this question. Figure is attached as a file/photo.

Use Figure 15.7 in your textbook which shows the net debt-to-enterprise value ratio for some select industries to answer both parts of the question.Respond to both parts to receive full credit for this assignment.

Part 1:Firms in the real estate investment trusts (REITs), airlines, electric utilities, and paper products industries tend to have high leverage.Explain why firms in these industries would prefer to have high leverage.

Part 2:Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries tend to have low leverage.Explain why firms in these industries would prefer to have low leverage.

Include some news from an article that is less than a year old that is applicable to this discussion.

FIGURE 15.7 Oil & Gas Drilling Debt-to-Enterprise Value Diversified Chemicals Real Estate Development Ratio for Select Industries Broadcasting (2015) Coal & Consumable Fuels Oil & Gas Storage & Transport Figure shows industry median Paper Products levels of net debt and total debt Homebuilding Casinos & Gaming as a percentage of firm enter Department Stores prise value. The spread between Healthcare Facilities Steel them, shown by the blue bars, Wireless Telecommunication corresponds to cash holdings. For Trucking example, Biotech firms tend to Commercial Printing Hotels, Resorts & Cruise Lines have no debt but hold a great deal Cable & Satellite of cash, and so have negative net Heavy Trucks & Equipment debt. Oil & Gas Drilling firms have Movies & Entertainment Healthcare Services much less cash and over 75% total Automotive Retail debt. While the median level of Railroads debt for all U.S. stocks was about Drug Retail Aerospace & Defense 23% of firm value, note the large Tobacco differences by industry. Advertising Tires & Rubber Source: Capital IQ, 2015. Integrated Oil & Gas Soft Drinks Restaurants All Firms Auto Parts & Equipment Packaged Foods & Meats Brewers Apparel & Luxury Goods Food Retail Publishing Gold Airlines Internet Retail Managed Healthcare Apparel Retail Footwear Health Care Technology Technology Hardware & Peripherals Computer & Electronics Retail Application Software Electronic Components Communications Equipment Semiconductors Pharmaceuticals Internet Software & Services Semiconductor Equipment Systems Software Biotechnology -50% -25% 0% 25% 50% 75% Net Debt and Total Debt to Enterprise Value