In Table 14 3 Rajan and Zingales use both book and market values of equity to measure debt ratios Which measure results in the lower ratio Why Debt to Total Capital Book, Adjusted Market, Adjusted Book Market Canada 39 37 35 32 France 48 34 41 28 38 Germany Italy Japan United Kingdom United States ...

In general using market values of equity results in lower debt ...

In Table 14.3 Rajan and Zingales use both book and market values of equity to measure debt

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In Table 14.3 Rajan and Zingales use both book and market values of equity to measure debt ratios. Which measure results in the lower ratio?Why?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 06:52 AM

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Rajan and Zingales identified four variables that seemed to explain differences in debt ratios in several countries. What are the four variables?
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In Table 14.3 Rajan and Zingales use both book and market values of equity to measure debt

Question:

Debt to Total Capital Book, Adjusted Market, Adjusted Book Market Canada 39% 37% 35% 32% France 48 34 41 28 38 Germany Italy Japan United Kingdom United States 18 23 15 47 39 46 36 53 37 29 17 28 37 16 19 11 23 28 33

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Principles of Corporate Finance

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