Home Depot, Inc. (HD), operates as a home improvement retailer primarily in the United States, Canada, and Mexico. The balance sheet for Home Depot for February 3, 2008, included the following liabilities and owners equity:

a. What are Home Depots debt ratio and interest-bearing debt ratio?

b. If Home Depot has common equity with a market value of $44.9 billion and no

excess cash, what is the firms debt-to-enterprise-value ratio? (Hint: Assume that the market value of the firms interest-bearing debt equals its book value.)

($ thousands) Financial Structure Liabilities Accounts payable Short-term/current debt Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Long-term liabilities Stockholders' equity Total $ 9,185,000 2,047,000 1,474,000 $12,706,000 11,383,000 2,521,000 $13,904,000 $17,714,000 $44,324,000