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