When Considering the Impact of Distress Costs on Capital Structure,which

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.