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HELP!!! Required information Problem 9.4A (Algo) Explore the impact of leases on the debt to equity ratio (LO9-3, 9-8) [The following information applies to the
HELP!!!
Required information Problem 9.4A (Algo) Explore the impact of leases on the debt to equity ratio (LO9-3, 9-8) [The following information applies to the questions displayed below) Thrillville has $40.3 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 ossets are $80.3 million, and its abilities other than the bonds payable are $10.3 million. The company is considering some additional financing through leasing, Problem 9-4A (Algo) Part 4 The company enters a lease agreement requiring lease payments with a present value of $15.3 million 4-a. Will entering into the lease cause the debt to equity ratio to be in violation of the contractual agreement in the bond? 4-b. Determine your answer by calculating the debt to equity ratio after recording the lease. Complete this question by entering your answers in the tabs below. Reg 4 Req 48 The company enters a lease agreement requiring lease payments with a present value of $15.3 million. Determine your answer by calculating the debt to equity ratio after recording the lease. (Enter your answers in millions (1,c., $5,500,000 should be entered as 5.5) rounded to 1 decimal place. Round ratio answer to 2 decimal places.) Debt to Equity Ratio Numerator/Denominator Amounts Step by Step Solution
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