Lowes 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 companys balance sheet for February 1, 2008, included the following sources of financing:

In Thousands of Dollars Financial Structure

Liabilities

Current liabilities

Accounts payable $4,137,000

Short term/current debt 1,104,000

Other current liabilities 2,510,000

Total current liabilities $7,751,000

Long-term debt $5,576,000

Other long-term debt 670,000

Long-term liabilities $6,246,000

Stockholder equity $16,098,000

Total $30,095,000

a. Calculate the values of Lowes debt ratio and interest-bearing debt ratio.

b. If the market value of Lowes common equity is $35.86 billion and Lowes has no excess cash, what is the firms debt-to-enterprise-value ratio? (Hint: you may assume that the market value of the firms interest-bearing debt equals its book value.)