PQR Industries has provided the following data for the year 2023:

Total Debt: $400,000

Total Equity: $600,000

Interest Expense: $40,000

Earnings Before Interest and Taxes (EBIT): $100,000

Requirements:

Calculate the debt-to-equity ratio.

Determine the interest coverage ratio.

Compute the equity multiplier.

Assess the financial leverage of the company.

Evaluate the impact of leverage on profitability.