Industry	Ratio of Debt to Total Capital	Ratio of Debt to Equity	# of Companies	SIC Code	Representative Companies
Electric utilities	48.54%	94.31%	33	491	American Electric Power
Computer equip.	9.09	10.02	48	357	Apple
Paper	27.75	38.4	24	26	Avery Dennison
Petroleum refining	32.37	47.65	18	29	Chevron
Airlines	63.92	177.19	19	5412	Delta
Pay TV	63.56	193.88	5	484	Dish
Motor Vehicles	17.77	21.6	25	371	Ford
Fabric Apparel	15.86	18.84	14	23
Dept. Stores	27.4	37.73	8	531	J.C Penny
Eating places	23.4	30.54	42	5812	Mcdonalds
Drugs	7.8	8.46	194	283	Merck
Steel Works	19.96	24.95	9	331	Nucor

Refer to the capital structures given above.

a). What do you notice about the types of industries with respect to their average D/E ratios?

b). Are certain types of industries more likely to be highly leveraged than others?

c). What are some possible reasons for this observed segmentation?

d). Do the operating results and tax history of the firms play a role?

e). How about their future earnings prospects?