Find industries in the australian stock market

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The following table shows characteristics of firms from different industries in the Australian stock market.

Company Name

Industry

Life-cycle stage

Cash flows

Tech Ltd

Technology

Introductory

Highly Uncertain

Your Energy Ltd

Utility

Mature

Certain

Tech Adv Ltd

Technology

Growth

Uncertain

i. Which of the above firms will be able to afford a high debt to equity ratio? Explain your answer.

ii. Which of the above firms will have a high default risk if there is debt in their capital structure? Explain your answer.

Reference no: EM133075480

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