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In its most recent financial statements Driver Enterprises reported total debt of $1,594 and total assets of $5,984. In a footnote Driver reported 10 years
In its most recent financial statements Driver Enterprises reported total debt of $1,594 and total assets of $5,984. In a footnote Driver reported 10 years of future lease obligations averaging $200 per year. The firm faces a cost of debt of 5%. Calculate the debt ratio for the company after incorporating the valuation of the lease obligations. Present your answer in percentage terms, rounded to two decimal places, e.g., 20.00%.
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