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Pfizer (PFE) – http://finance.yahoo.com/q/ks?s=PFE+Key+Statistics
Coca-Cola (KO) – http://finance.yahoo.com/q/ks?s=KO+Key+Statistics
Construct the Book Debt Ratio and Market Debt Ratio for both firms. Assume 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?
Book Debt Ratio � Book Debt / (Book Dept + Book Equity)
Market Dept Ratio* – Book Debt / (Book Dept + Market Equity)
- Assuming that Book Debt Approximates Market Debt