13.

Thrillville has $39.9 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed 2.0. Thrillville's total assets are $79.9 million, and its liabilities other than the bonds payable are $9.9 million. The company is considering some additional financing through leasing. 4-a. Will entering into the lease cause the debt to equity ratio to be in violation of the contractual agreement in the bond? Yes No 4-b. Determine your answer by calculating the debt to equity ratio after recording the lease. (Enter your answer in millions. (.e., $5,000,000 should be entered as 5.5). Round ratio answer to 2 decimal places.) Total liabilities Debt to Equity Ratio Stockholders' equity