RDP 2005-12: Financial Constraints, the User Cost of Capital and Corporate Investment in Australia Equation (3)

r_{i, t}^{C} = \frac{D_{i, t}}{(D_{i, t} + E_{i, t})} r_{i, t}^{D} + \frac{E_{i, t}}{(D_{i, t} + E_{i, t})} r_{i, t}^{E}