Home depots debt ratio and interest-bearing debt ratio

Reference no: EM13199485

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

In Thousands of Dollars			Financial Structure
Liabilities
Current liabilities
		Accounts payable	$ 9,185,000
		Short/current debt	2,047,000
		Other current liabilities	1,474,000
Total current liabilities			$12,706,000
Long-term debt			11,383,000
Other long-term liabilities			2,521,000
Long-term liabilities			$13,904,000
Stockholder equity			$17,714,000
	Total		$44,324,000

1. What is Home Depot's debt ratio and interest-bearing debt ratio?

2. If the market value of Home Depot's common equity is $44.90 billion, what is the firm's debt to value ratio? (Hint: assume that the market value of the firm's interest-bearing debt equals its book value.)

Reference no: EM13199485

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