Green Company and Black Company are each achieving 15% annual revenue growth and have recently started to generate positive cash flow. Green Company owns and acquires renewable energy generation projects. Black Company is a cloud-based software company with a dominant market position, serving auto dealers. Which is more likely to have greater debt in its capital structure, and why?
Group of answer choices
Black Company, because of the strength of its market position.
Black Company, because it serves a cyclical business.
Green Company, because its underlying assets can be financed with debt.