There was an upward trend in the ratio of the book value of debtto the book value of debt and equity throughout the 1990s. Some ofthis was due to the repurchasing of stock. The market value ratioof debt to debt and equity exhibited no upward trend. This can beexplained by:

Group of answer choices

None of the three statements.

a large increase in the market value of equity that was greaterthan the increase in debt.

the difference between tax accounting and accounting forfinancial accounting purposes.

the change in the accounting rules of the period.

All of the three statements.