Mogdiliani and Miller (MM) Proposition 1 with taxes suggests that the optimal capital structure should be close to 100% debt. Yet the companies (with the exception of Company 1) in the table in part (a) have debt levels very much less than 100%, as shown by the debt-equity ratios. Briefly explain by giving one (1) reason why this is the case.

Hello guys, could u please answer this for me to understand the theory.

(a) The table below shows the ratios for four companies: retail jewelry, advertising agency, heavy equipment manufacturer, bank. COMPANY 1 2. 3 4 9.0 2.0 0.7 1.1 Debt-equity Inventory Turnover Current Ratio 2.5 4.0 N.A. 1.6 2.0 1.8 Sales/Total Assets 0.1 1.8 5.0 4.5 Sales/Receivables 2.0 12.0 50.0 9.0