why is C incorrect??

guys any reasons / replies?

confuse mind wrote:guys any reasons / replies?

Hi,
I think here the focus is on the ability, not the firm. So, we need to use ability after possessive form in such statements.
For example :
You are waiting for someone's response to your post (Correct)
You are waiting for someone to respond to your post (very informal)
You can consider any simple example like this and apply the same rule for a complex sentence.

Can any expert comment on the 2nd example..

Frankenstein wrote:

confuse mind wrote:guys any reasons / replies?

Hi,
I think here the focus is on the ability, not the firm. So, we need to use ability after possessive form in such statements.
For example :
You are waiting for someone's response to your post (Correct)
You are waiting for someone to respond to your post (very informal)
You can consider any simple example like this and apply the same rule for a complex sentence.

Can any expert comment on the 2nd example..

I would have said "waiting for X to Y" is a normal idiom and not very informal at all.

In the original,

# The market has confidence that the firm will add back leverage to increase profits.
# The market has confidence in the firm's ability to add back leverage to increase profits.
# The market has confidence in the firm to add back leverage to increase profits.

I would have said that only the third one is incorrect.
You can have "confidence in the firm's ability", and if you go on to define that ability, the idiom is "ability to [verb]". The third one has "to add back" with nothing to justify the infinitive.