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Debt and Price-Eamings Ratos The Home Depot, Inc. (HO) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW) The

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Debt and Price-Eamings Ratos The Home Depot, Inc. (HO) operates over 2,200 home improvement retail stores and is a competitor of Lowe's (LOW) The wing tata nmi) were free francia tements of The Home Depot Year 2 Year 1 Total assets Total liabilities Total stockholders Earnings per share $44,529 $42,966 43,075 38.633 1,454 4,333 57:29 16.45 3. Compute the debt ratio for Years 1 and 2. Round to one decimal place. Year 2 Debt ratio Year 1 2. Given your answer to part (1), what is the rate of stockholders' equity to total assets? Round to one decimal place. Year 2 Ratio of stockholders' equity to total assets Year 1 3. Are Home Depot's operations financed primarily with abilities or equity? 4. Comparing Years 1 and 2, should creditors feel more or less safe in Year 27 Less safe 5. With a market price of $187.41, compute the price-eamings ratio for Year 2. Round to one decimal place 6. With a market price of $129.59, compute the price-earnings ratio for Year 1 Round to one decimal place 7. The price-earnings ratio has increased by 5.6 percent during year 2. This increase in the pie eamings rings that the market has changed to expectation the wings gran than it did in Year 1 in year 2 it expects future eamings to grow fester

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