Question: 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?

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%

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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