$($Related to Checkpoint $15\mathrm{.}1)($Calculating capital structure weights$)$ Winchell Investment Advisors is evaluating the capital structure of Ojai Foods. Ojai's balance sheet indicates that the firm has $$51\mathrm{.}66$ million in total liabilities. Ojai has only $$40\mathrm{.}19$ million in short$-$ and long$-$term debt on its balance sheet. However, because interest rates have fallen dramatically since the debt was issued, Ojai's short$-$ and long$-$term debt has a current market price that is $10$ percent over its book value or $$44\mathrm{.}21$ million. The book value of Ojai's common equity is $$48\mathrm{.}76$ million but the market value of the equity is currently $$100\mathrm{.}35$ million.

a$.$ What is Ojai's debt ratio and interest$-$bearing debt ratio calculated using book values?

b$.$ What is Ojai's debt$-$to$-$enterprise$-$value ratio calculated using the market values of the firm's debt and equity and assuming excess cash is zero?

c$.$ If you were trying to describe Ojai's capital structure to a potential lender $($i$.$e$.,$ a bank$),$ would you use the book$-$value$-$based debt ratio or the market$-$value$-$based debt$-$to$-$enterprise$-$value ratio?