DPH TREE FARM, INC.

Income Statement as of December $31,2018$ and $2017$

$($in millions of dollars$)$

Net sales $($all credit$)$

Less: Cost of goods sold

Gross profits

Less: Other operating expenses

Earnings before interest, taxes, depreciation, and

amortization $($EBITDA$)$

Less: Depreciation and amortization

Earnings before interest and taxes $($EBIT$)$

Less: Interest

Earnings before taxes $($EBT$)$

Less: Taxes

Net income

Less: Preferred stock dividends

Net income available to common stockholders

Less: Common stock dividends

Addition to retained earnings

Per $($common$)$ share data:

Earnings per share $($EPS$)$

$$4\mathrm{.}00,$$$3\mathrm{.}00$

Dividends per share $($DPS$)$

$\frac{17}{\text{\$}165}\frac{15}{\text{\$}140}$

Book value per share $($BVPS$)$

$1\mathrm{.}25,1\mathrm{.}25$

Market value $($price$)$ per share $($MVPS$)$

$12\mathrm{.}50,9\mathrm{.}75$

$17\mathrm{.}25,15\mathrm{.}60$

$1.$ Based on the Income Statement below, what was DPH$\text{'}$s average tax rate in $2018?$ Show your math.

$2.$ And$/$or: what was the average tax rate in $2017?$ What could have been the cause of this change?