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FoodMarkets Inc. is a grocery chain. It reported a debt to capital ratio of 1 0 % , and a return on capital of 2
FoodMarkets Inc. is a grocery chain. It reported a debt to capital ratio of and a return on capital of on a book value of capital invested of $ billion. Assume that the firm has significant operating leases. If the operating lease expense in the current year is $ million and the present value of lease commitments is $ million, estimate the FoodMarket's debt to capital and return on capital. Assume Food markets will depreciate the value of the leased asset over years using straightline depreciation. Assume tax rate is
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