calculate debt to equity and book leverage.

Debt to equity is NOT 3, 0.75, 2.75

Book leverage is NOT 0.75, 0.6875, or 0.375

Debt-to-equity is calculated as total debt/shareholders equity

Book leverage is calculated as total debt/total assets

Assumptions Corporate tax rate \21 \\begin{tabular}{lrr} Income Statement & & \\\\ Sales & \\( \\$ 1,000.00 \\) \\\\ Cost of goods sold & \\( \\$ 500.00 \\) \\\\ Gross margin & \\( \\$ \\) & 500.00 \\\\ Sales, general, and administraive expense & \\( \\$ \\) & 100.00 \\\\ Depreciation expense & \\( \\$ \\) & 200.00 \\\\ EBIT & \\( \\$ \\) & 200.00 \\\\ Interest Expense & \\( \\$ \\) & 50.00 \\\\ EBT & \\( \\$ \\) & 150.00 \\\\ Taxes & \\( \\$ \\) & 31.50 \\\\ Earnings & \\( \\$ \\) & 118.50 \\\\ \\hline \\hline \\end{tabular} Total assets \\( \\$ 1,600.00 \\) Total liabilities and shareholders' equity \\( \\$ 1,600.00 \\)