Question

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 Thossands of Dollars Financial Structure
Liabilities
Current liabilities
Accounts payable ............ $ 9,185,000
Short-term/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
a. What are Home Depot’s debt ratio and interest-bearing debt ratio?
b. If the market value of Home Depot’s common equity is $44.90 billion and assuming that Home Depot has no excess cash, what is the firm’s debt-to-enterprise-value ratio?



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  • CreatedOctober 31, 2014
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