The study shows that the value of a company's assets compared to their replacement cost depends on how long it takes to replace them. When interest rates go up, the effect on asset value can be good or bad, depending on how long it takes to replace the assets. If a company's debt takes longer to pay off, it can make more money from interest, leading to a higher return on investments. This means that the interest rates on long-term loans will be higher than on short-term loans, no matter what else is going on.