An analyst is comparing two companies from the same industry that are based in different countries. Company A's home country has a strong legal system, while company B's home country has a weak legal system. Based only on this information and all else being equal, the analyst will most likely expect to find that company A has a:

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lower debttoequity ratio and longer maturity debt.

higher debttoequity ratio and shorter maturity debt.

higher debttoequity ratio and longer maturity debt.

Agency costs of equity are most likely to be higher for a company relative to its peers if it has:

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a lower debttoequity ratio.

higher accounting transparency.

better corporate governance.

A company has set a goal of maintaining its current credit rating on its debt of A. This is most likely being done to:

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ensure that there is no risk of default on its debt.

achieve the lowest debt cost possible.

avoid having to incur higher debt costs if the company's credit rating falls.