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Harrison, Inc., has the following book value balance sheet: Balance Sheet Assets Liabilities and equity   Current...

Harrison, Inc., has the following book value balance sheet:

Balance Sheet
Assets Liabilities and equity
  Current assets $ 140,000,000   Total debt $ 250,000,000
     Equity   
     Common stock 30,000,000
               Capital surplus 77,000,000
  Net fixed assets    415,000,000      Accumulated retained earnings 198,000,000
  Total shareholders' equity $ 305,000,000
  Total assets $ 555,000,000   Total debt and shareholders' equity $ 555,000,000
a.

What is the debt–equity ratio based on book values?
b.

Suppose the market value of the company's debt is $251.5 million and the market value of equity is $685 million. What is the debt–equity ratio based on market values?
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