Observed relationship between debt ratios and profitability

Reference no: EM131328294

1. What industrial and national capital structure patterns are exhibited globally? What factors seem to be driving these patterns?

2. What is the observed relationship between debt ratios and profitability, and the perceived costs of financial distress? Why does the relationship between leverage and profitability imply that capital structure choice is residual in nature?

Reference no: EM131328294

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