Which of the following statements is true?

a) Empirical evidence suggests that, consistent with the pecking order theory, on

average, firms in the computer software industry have higher leverage ratios than

firms in the pharmaceutical industry.

b) Empirical evidence suggests that, consistent with the trade-off theory, all else equal,

more profitable firms have higher leverage ratios.

c) Empirical evidence suggests that, consistent with the trade-off theory, firms tend to

have target leverage ratios.

d) Empirical evidence suggests that, consistent with the pecking order theory, all else

equal, firms with more public debt (corporate bonds) have higher leverage ratios.

e) None of the above.