Problem 15-7 Financial Leverage Harrison, Inc., has the following book value balance sheet: Assets Current assets $ 185,000,000 $ 184,000,000 Total Debt and Equity Total debt Equity Common stock Capital surplus Accumulated retained earnings $ 35,000,000 86,000,000 Net fixed assets 285,000,000 165,000,000 Total shareholders' equity $286,000,000 Total assets $ 470,000,000 Total debt and shareholders' equity $ 470,000,000 a. What is the debt-equity ratio based on book values? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. Suppose the market value of the company's debt is $185.3 million and the market value of equity is $730 million. What is the debt-equity ratio based on market values? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) times a. Debt-equity ratio b. Debt-equity ratio times