3. Look at the long-term debt as a percentage of total capitalization. What happened to P&G’s financial leverage in 2005 and how has the ratio changed since 2005?

How has the change in financial leverage affected the return on equity?

Log onto the S&P Market Insight Web site, www.mhhe.com/edumarketinsight. Click on "Company," which is the first box below the Market Insight title. Type Procter and Gamble’s ticker symbol “PG” in the box and click on Go. This exercise is simply aimed at showing you a company that has made acquisitions in recent years. Click on “Stock Reports” and then click again on “Stock Reports” once the page opens. Scroll down to the second page and find a small section called Impact of Major Developments.