What do you notice about the types of industries with respect to their average debtequity ratios? Are certain types of industries more likely to be highly leveraged than others? What are some possible reasons for this observed segmentation? Do the operating results and tax history of the firms play a role? How about their future earnings prospects? Explain.

SIC Ratio of Debt to Total Ratio of Debt to Capital Equity Number of Companies Industry Code Representative Companies Electric utilities 48.54% 94.31% 33 491 American Electric Power, Southern Co. 357 Apple, Cisco Computer equipment 9.09 10.02 48 Paper 27.75 38.40 26 Avery Dennison, Weyerhaeuser 29 Chevron, Sunoco 4512 Delta, Southwest Petroleum refining 47.65 32.27 63.92 Airlines 177.19 Pay television 63.56 193.88 484 Dish Network, Tivo Motor vehicles 17.77 21.60 Fabric apparel 18.84 Department stores 15.86 27.40 23.40 37.73 371 Ford, Winnebago 23 Guess, Jones Apparel 531 J.C. Penney, Macy's 5812 McDonald's, Papa John's 283 Merck, Pfizer 331 Nucor, U.S. Steel Eating places 30.54 Drugs 7.80 8.46 Steel works 19.96 24.95 SIC Ratio of Debt to Total Ratio of Debt to Capital Equity Number of Companies Industry Code Representative Companies Electric utilities 48.54% 94.31% 33 491 American Electric Power, Southern Co. 357 Apple, Cisco Computer equipment 9.09 10.02 48 Paper 27.75 38.40 26 Avery Dennison, Weyerhaeuser 29 Chevron, Sunoco 4512 Delta, Southwest Petroleum refining 47.65 32.27 63.92 Airlines 177.19 Pay television 63.56 193.88 484 Dish Network, Tivo Motor vehicles 17.77 21.60 Fabric apparel 18.84 Department stores 15.86 27.40 23.40 37.73 371 Ford, Winnebago 23 Guess, Jones Apparel 531 J.C. Penney, Macy's 5812 McDonald's, Papa John's 283 Merck, Pfizer 331 Nucor, U.S. Steel Eating places 30.54 Drugs 7.80 8.46 Steel works 19.96 24.95