Question
For the most recent financial year 2019, TLS reported operating lease expenses of $1,349 million, operating income (EBIT) of $3,702 million, and interest-bearing debt of
- For the most recent financial year 2019, TLS reported operating lease expenses of $1,349 million, operating income (EBIT) of $3,702 million, and interest-bearing debt of $15 billion. The following table shows its future lease payments.
Year Future Lease Payments in $m
1 947
2 360
3 370
4 375
5. 350
5-10 278.8 per year
Assume the company's pre-tax cost of debt is 5.8%, and the effective tax rate is 30%.
(i) What is the total debt of the company after reclassifying
operating leases as debt?
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
