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Coney Island enters into a lease agreement for a new ride. The lease payments have a present value of $2 million. Prior to this agreement,

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Coney Island enters into a lease agreement for a new ride. The lease payments have a present value of $2 million. Prior to this agreement, the company's total assets are $25 million and its total liabilities are $15 million Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not In dollars (Le $5,000,000 should be entered as 5.) millon 2. & 3. Calculate the debt to equity ratio, prior to the lease being signed and immediately after the lease being signed. (Round your answers to 2 decimal places.) Before Lease Nite Lease Debt to equity ratio 4. Doos the direction of the change in the debt to equity ratio typically indicate that the company has higher leverage nisk? Yes O No

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