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If you capitalize operating leases and treat them as debt, which of the following will always occur? aThe cost of equity will increase because of

If you capitalize operating leases and treat them as debt, which of the following will always occur?

aThe cost of equity will increase because of the higher debt ratio.

bThe operating income will increase because you will be adding back operating lease expenses.

cThe debt ratio will increase.

dThe return on capital will increase.

eNone of the above.

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