Refer to the observed capital structures given in Table 17.3 of the text, copied in the next. Table 17.3 Capital Structure Ratios for Selected U.S. Industries (averages) High Leverage Homebuilding Hotel/gaming Steel Construction supplies Environmental & waste services Low Leverage Healthcare products Pharmaceutical Semiconductor Online retail Internet software Debt as a Percentage of the Market Value of Equity and Debt (Industry Averages) 66.29 55.28 47.93 42.57 38.98 17.96 14.58 14.09 9.63 4.27 I What do you notice about the types of industries with respect to their average debt-equity ratios? Are certain types of industries more likely to be highly leveraged than others? What are some possible reasons for this observed segmentation?

Refer to the observed capital structures given in Table 17.3 of the text, copied in the next. What do you notice about the types of industries with respect to their average debt-equity ratios? Are certain types of industries more likely to be highly leveraged than others? What are some possible reasons for this observed segmentation