(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: Liabilities Current liabilities Accounts payable $4137000 Short-term/current debt 1104000 Other current liabilities 2510000 Total current liabilities 7751000 Long-term debt 5576000 Other long-term liabilities 670000 Long-term liabilities 6246000 Stockholder equity 16098000 Total 30095000 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.)