Question: The consultant for the case on the capital structure for Trans Quebec Maritime Pipeline estimated an empirical equation, see the table below, relating Canadian public

The consultant for the case on the capital structure for Trans Quebec Maritime Pipeline estimated an empirical equation, see the table below, relating Canadian public utilities equity ratios to a set of firm/ industry-specific and market related variables. He argued these results provided evidence in support of two key established capital structure theories. Please discuss the results and the reasoning underlying his assertions.

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