Input area: Assets Total debt and equity Current assets $ 125,000,000 Total debt $ 170,000,000 Equity Common stock $ 15,000,000 Capital surplus 70,000,000 Accumulated retained earnings 100.000.000 Net fixed assets $ 230,000,000 Total shareholders' equity Total assets Total debt and shareholder's equity Market value of debt 180,000,000 Market value of equity 590,000,000 Output area: Book value debt-equity ratio Market value debt-equity ratio (Market values are preferred over book, or accounting, values since market values represent the current value, while book value represents historical cost) 7. Financial Leverage Fields, Inc., has the following book value balance sheet: Assets Total Debt and Equity Current assets $125,000,000 Total debt $170,000,000 Equity Common stock $15,000,000 Capital surplus 70,000,000 Accumulated retained earnings 100,000,000 Net fixed assets $230,000,000 Total shareholders' equity $ 185,000,000 Total assets $355,000,000 Total debt and shareholders' equity $355,000,000 a. What is the debt-equity ratio based on book values? b. Suppose the market value of the company's debt is $180 million and the market value of equity is $590 million. What is the debt-equity ratio based on market values? c. Which is more relevant, the debt-equity ratio based on book values or market values? Why