a. Compute Webb's debt ratio and interest-bearing debt ratio.

b.If the market value of Webb's equity is $2,063,000 and the value of the firm's debt is equal to its book value, assuming excess cash is zero, what is the debt-to-enterprise-value ratio for Webb?

c.If you were a bank loan officer who was analyzing whether or not to loan more money to Webb, which of the ratios calculated in parts a and b is most relevant to your analysis?

1) Webb's debt ratio is %

Accounts payable $522,000

Short-term debt $247,000

Current liabilities $769,000

Long-term debt $741,000

Shareholders' equity $519,000

Total $2,029,000