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Two firms YYY and ZZZZ are in the same industry. They are very similar except that firm YYY has greater leverage than ZZZZ. Which of

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Two firms YYY and ZZZZ are in the same industry. They are very similar except that firm YYY has greater leverage than ZZZZ. Which of the following is the most likely when comparing YYY and ZZZZ? A. YYY's equity holders expect a higher return, and YYY's bankruptcy costs are lower. B. ZZZZ's equity holders expect a higher return, and YYY's bankruptcy costs are lower. C. YYY's equity holders expect a higher return, and ZZZZ's bankruptcy costs are lower. D. ZZZZ's equity holders expect a higher return, and ZZZZ's bankruptcy costs are lower. E. None of the above

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