The change in capitalization associated with a public security offering is
calculated using information in the offering prospectus. We were able to obtain
a copy of the offering prospectus for approximately 80% of the completed
offerings. The prospectus reports the composition of the firm’s capital structure
prior to the offering (usually within two months of the offering) and after the
offering. The post-offering capitalization reflects the planned use of the proceeds as well as the effects of any other nearby capital structure change. We
compute the differences between the post-offering and pre-offering values of
short-term debt, long-term debt, common stock, preferred stock and leases.
The sum of these differences represents our measure of the change in capitalization.