They are all correct.
My preference is for #3.
Rover
1) I read your new book and found that it was excellent.
2) I read your new book and found it to be excellent.
3) I read your new book and found it excellent.
They are all correct.
My preference is for #3.
Rover
As Rover said, they're all correct. I find all of them rather formal and a little unnatural. Whether a book is excellent or not is rather subjective so to say that you "found" it [to be] excellent sounds more like a statement of fact than an opinion. I would use:
I read your book and thought it was excellent.
Remember - correct capitalisation, punctuation and spacing make posts much easier to read.