Debt ratios by using the market value of equity

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Log on to finance.yahoo.com and click the Key Statistics link for Pfizer (PFE) and Coca-Cola (KO). Construct the debt ratio, debt/(debt + equity), for both firms. Now calculate their debt ratios by using the market value of equity but assuming that book value of debt approximates its market value. How does debt as a proportion of firm value change as you switch from book to market values? Chapter 16

Reference no: EM131066464

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