The following table summarizes the results of regressing changes in
The following table summarizes the results of regressing changes in firm value against changes in interest rates for six major footwear companies:
Change in Firm Value = a + b(Change in Long − Term Interest Rates)
a. How would you use these results to design debt for each of these companies?
b. How would you explain the wide variation across companies? Would you use the average across the companies in any way?
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