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Complete this question by entering your answers in the tabs below. The company enters a lease agreement requiring lease payments with a present value of
Complete this question by entering your answers in the tabs below. The company enters a lease agreement requiring lease payments with a present value of $14.2 million. Will entering into the lease cau the debt to equity ratio to be in violation of the contractual agreement in the bond? Required information [The following information applies to the questions displayed below.] Thrillville has $39.2 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 $79.2 million, and its liabilities other than the bonds payable are $9.2 million. The company is considering some additional financing through leasing. Required: 1. Calculate total stockholders' equity using the balance sheet equation. (Enter your answer in millions rounded to 1 decimal place (i.e., $5,500,000 should be entered as 5.5 ).) Journal entry worksheet The company enters a lease agreement requiring lease payments with a present value of $14.2 million. Record the lease. Note: Enter debits before credits. =1 The company enters a lease agreement requiring lease payments with a present value of $14.2 million. Determine your answer by calculating the debt to equity ratio after recording the lease. (Enter your answers in.millions (i.e., $5,500,000 should be entered as 5.5) rounded to 1 decimal place. Round ratio answer to 2 decimal places.)
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