In practice, it is often observed that high growth technology companies tend to have low debt ratios.

What do the following theories predict regarding the optimal debt ratios of high growth R&D companies incomparison to companies with few growth options?

i) Trade-off theory

ii) Pecking order theory

When answering this questions briefly describe each theory and identify when each theory predicts that optimally chosen debt ratios to be low. Relate these predictions to the example of high growth technology firms. Do these predictions coincide with the low debt ratios among technology firms observed in practice?