Look again at Table 16.3. Can you provide a market timing interpretation to the distribution of gearing ratios in the table? Can you provide a more plausible or intuitive interpretation of the figures? Write a brief report, justifying your views.

Table 16.3.

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Debt to equity Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities N.A. Total From 0 to 10% (%) 39.27 24.42 31.34 41.99 47.92 24.28 45.59 47.22 35.94 15.84 25 1592 From 10 to 50% (%) 24.77 31.16 25.35 19.52 28.82 32.13 25.49 32.74 21.88 14.85 25 1201 From 50 to 70% (%) 12.99 12 8.27 5.43 5.21 11.56 9.31 8.91 3.13 7.92 0 399 From 70 to 100% 10.57 14.53 8.98 5.62 6.6 10.39 5.88 2.9 15.63 11.88 0 380 More than 100% (%) 12.39 17.89 26.06 27.44 11.46 21.63 13.73 8.24 23.44 49.5 50 941 Number of Companies 331 475 568 1086 288 943 204 449 64 101 4 4513