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Industries in which companies have highly tangible assets that preserve their value in liquidation tend to have high leverage ratios, and vice versa. For example, internet companies, knowledge-based companies and human capital intensive companies all tend to rely primarily on equity financing because their assets are intangible and not suitable as collateral for debt financing. 
2. Modigliani and Miller also do not agree with the traditional view. They criticise the assumption that the cost of equity remains unaffected by leverage up to some reasonable limit.