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Merck debt to capitalization

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Over the last two decades, pharmaceutical companies have been slowly increasing their leverage. For example, in 2001, Merck had a Debt to Capitalization ratio of 0.30; Pfizer had a Debt to Capitalization ratio of 0.33. In 2015, Merck's Debt to Capitalization was 0.37; Pfizer's was 0.38. What do you think is going on in this industry that is causing this shift?

Reference no: EM133067872

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