Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. why might you see a low debt-to-equity ratio in te

Why might you see a low debt-to-equity ratio in tech companies?...

80.2K

Verified Solution

Question

Accounting

image
Why might you see a low debt-to-equity ratio in tech companies? Most tech companies do have a high debt-to-equity ratio. There are not enough tech companies to make the interest rates very high. They don't have a lot of physical assets, so they haven't had to take on lots of loans. Tech companies make a lot of money and can pay off the interest immediately

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Discuss the role of plant tissue culture methods for generation of (a) somatic hybrid plants, and...

Biology
1.2K views

Please explain the rationale behind circadian timing of chemotherapy for cancer treatment

Mechanical Engineering
1.2K views

Matlab assignment. The objectives of this project are (1) to introduce the students to scripting applied to...

Biology
1.2K views

In class, we compared taxonomy and systematics. Which of the following BEST describes a limitation...

Physics
1.2K views

The magnetic field due to current carrying circular loop of radius 3 cm at a...

Basic Math
1.2K views

How tall is a building that casts a 66 ft shadow when the angle of...

Accounting
1.2K views

Steve Jackson (birthdate December 13,1968 ) is a single taxpayer living...

Accounting
1.2K views

Accounting for scrap Accounting for scrap predetermined overhead rate for the year: a. What...

Accounting
1.2K views

What is the Future Value (FV) of $100,000 invested for 20 years with an interest...

Accounting
1.2K views

Help with the numbers to fill in please!! Global Marine obtained a...

Accounting
1.2K views

Presented below is information for Blossom Company for the month of March 2020. ...

Accounting
1.2K views

Can someone please explain to me how do i post an image. I tried to...