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Would the market-value debt ratio tend to be higher than the book-value debt ratio during a stock market boom or a recession? Explain. Why would

Would the market-value debt ratio tend to be higher than the book-value debt ratio during a stock market boom or a recession? Explain.

Why would the WACC based on market values tend to be higher than the one based on book values if the stock price exceeded its book value?

Which would you expect to be more stable over time, a firms book-value or market-value capital structure? Explain.

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