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(Describing a firm's capital structure) Lowe's Companies, Inc. (LOW) and its subsidiaries operate as a home improvement retailer in the United States and Canada. As

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(Describing a firm's capital structure) Lowe's Companies, Inc. (LOW) and its subsidiaries operate as a home improvement retailer in the United States and Canada. As of February 1, 2008, it operated 1,534 stores in 50 states and Canada. The company's balance sheet for February 1,2008 , included the following sources of financing: a. Calculate the values of Lowe's debt ratio and interest-bearing debt ratio. b. If the market value of Lowe's common equity is $35.86 billion and Lowe's has no excess cash, what is the firm's debt-to-enterprise-value ratio? (Hint: you may assume that the market value of the firm's interest-bearing debt equals its book value.) a. Lowe's debt ratio is %. (Round to one decimal place.) Data table

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