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Coney Island enters into a lease agreement for a new ride. The lease payments have a present value of $$3\mathrm{.}8$ million. Prior to this agreement, the company's total assets are $$30\mathrm{.}4$ million and its total liabilities are $$16\mathrm{.}8$ million.

Required:

Calculate total stockholders' equity prior to the lease agreement.

& $3.$ Calculate the debt to equity ratio, prior to the lease being signed and immediately after the lease being signed.

Does the direction of the change in the debt to equity ratio typically indicate that the company has higher leverage risk?

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ and $3$

Req $4$

Calculate the debt to equity ratio, prior to the lease being signed and immediately after the lease being signed. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

$\backslash$table$[[,$Before Lease,After Lease$],[$Debt to equity ratio,,$]]$