Federated Investors, Inc. includes the following in its 2013 annual report:

The following is a schedule by year of future minimum payments required under the operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2013:

(in millions)	Operating
	Leases
2014	$13.0
2015	14.0
2016	13.3
2017	12.7
2018	12.7
2019 and thereafter	45.5
Total minimum lease payments	$111.2

a. Calculate the present value of operating lease payments using a discount rate of 6%. (5 points)

b. For 2013, the company reported total assets of $1,135.8 million and total liabilities of $553.9 million. What would total assets and total liabilities have been if the company had capitalized these leases. (4 points)

c. Assume that the leased equipment has a useful life of 10 years and no salvage value. Estimate the effect on net operating profit before tax of capitalizing these leases, assuming the rent expense in 2013 is equal to 2014 rent expense. (5 points)

d. Explain how ROE, FLEV, RNOA, and NOAT would be affected if these leases are capitalized. (5 points)