If a policy loan has not been repaid by the time the insured dies, the amount paid to the beneficiary is reduced by the amount of the debt.

Which statement expresses a reason why companies are moving away from offering defined-benefit plans and toward defined-contribution plans?

According to Modigliani and Miller's second paper, firms should use ________% debt to maximize the value of the firm

A) 100 B) 20 C) 40 D) 80 E) 60