When considering the impact of distress costs on capital structure, which of the following facts should lead ABC Corporation to set a higher target debt ratio than XYZ Corporation (all else equal)?

	a.	ABC's cash flows from operations are less volatile than XYZ's.
	b.	ABC is a computer software firm, and XYZ is an electric utility.
	c.	ABC operates in a more competitive industry than XYZ.
	d.	ABC's assets have lower resale values than XYZ's assets.