Variables used in the regression
Model

R

R Square

Adjusted R
Square

Std. Error of
the Estimate

1

.293^{a}

.086

.084

1365.48066%

a. Predictors: (Constant), Regression
Beta, EBITDA/Enterprise Value, Expected Growth in EPS (next 5 years)

ANOVA^{a,b}


Model

Sum
of Squares

df

Mean
Square

F

Sig.


1

Regression

323975514.43

3

107991838.14

57.919

.000^{c}

Residual

3462446037.2

1857

1864537.446




Total

3786421552.3

1860





a. Dependent Variable: Market Debt to
Cap


b. Weighted Least Squares Regression 
Weighted by Market Cap


c. Predictors: (Constant), Regression
Beta, EBITDA/Enterprise Value, Expected Growth in EPS (next 5 years)

Coefficients^{a,b}


Model

Unstandardized
Coefficients

Standardized
Coefficients

t

Sig.


B

Std.
Error

Beta


1

(Constant)

0.1479

.01375


10.756

.000

EBITDA/Enterprise Value

.374

.092

.101

4.075

.000


Expected Growth in EPS (next 5 years)

.396

.045

.225

8.769

.000


Regression Beta

.0580

.0095

.139

6.060

.000


a. Dependent Variable: Market Debt to
Cap


b. Weighted Least Squares Regression 
Weighted by Market Cap

Assume that you want to estimate the market debt ratio for a firm with the following characteristics:
EBITDA/ Enterprise Value = 8%
Expected growth rate in EPS = 10%
Regression Beta = 1.50
Expected Debt Ratio = 0.1479 + 0.374 *.08 + 0.058*1.50  0.396 *.10 = .2252 or 22.52%
If your predicted value is less than zero, your predicted debt ratio is zero.