Blue Sky Drone Company has a total asset turnover ratio of $6\mathrm{.}00x,$ net annual sales of $$40$ million, and operating expenses of $$18$ million $($including

depreciation and amortization$).$ On its balance sheet and income statement, respectively, it reported total debt of $$1\mathrm{.}75$ million on which it pays a $7\%$

interest rate.

To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone's debt management ratios?

The US tax structure influences a firm's willingness to finance with debt. The tax structure

more debt.