You are an investment banker who has a meeting today. The meeting entails a client requesting your services in determining the optimal capital structure for their firm. For the case below, describe whether you would recommend that the firm choose leverage which is less than, about the same as, or greater than the average across all firms. Explain your reasoning fully.

Your meeting is with a glass manufacturer that has generated stable cash flows based on high profitability. Unfortunately, there does not seem many future positive NPV projects for the enterprise. But the solid glass manufacturer generates is expected by all to generate solid cash flows for the foreseeable future. Nonetheless, the CEO is even more optimistic than investors. Their steady EBIT this year will be $100 million and the firm has Debt of $100 million paying interest of 5%.