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Winchell Investment Advisors is evaluating the capital structureof Ojai Foods. ? Ojai's balance sheet indicates that the firm has$51.75 million in total liabilities. Ojai has only ?$40.09 millionin? 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 marketprice that is 10 percent over its book value or $44.10million. Thebook value of? Ojai's common equity is $49.09 million but themarket value of the equity is currently $99.86 million.a.??What is? Ojai's debt ratio and? interest-bearing debt ratiocalculated using book? values?b.??What is? Ojai's debt-to-enterprise-value ratio calculatedusing the market values of the? firm's debt and equity and assumingexcess cash is? zero?c.??If you were trying to describe? Ojai's capital structure toa potential lender? (i.e., a? bank), would you use the?book-value-based debt ratio or the? market-value-baseddebt-to-enterprise-value? ratio?