debt equity ratio
Kartik (Student) (99 Points)
14 December 2017
satish
(teaching)
(2046 Points)
Replied 24 December 2017
these are debt free companies.
Pro's: 1. High solvency
2. High profit margin
3. Low Break Even Point
Con's: 1. Low EPS
2. Higher cost of capital (Debt is cheaper than Equity)
3. No Tax Benefit.