Problem 20.01 (Leasing Question 112 Check My Werkt remaining elok Cordell Construction needs a piece of equipment that can be leased or purchased. The cow s100. One option is to borrow $100 from the local bank and the morwy to buy the equipment. The other option is to lease the equipment. The company s balance sheet prior to the equipment purchase orience is shown below Current $350 Dept 1650 Fixed assets 600 Equity 300 Total asset $950 Totalities and equity 5950 What would be the company debt ratio if it chose to purchase the culment? Hound your answer to one decimal place The company's debt ratio is What would be the company's debt ratio if it leased the equipment and it could keep the off its balance sheet Round your answer to decimal place 1 the company leases the asset and does not capitalize the lease, its debt ratio Is the company's financial risk any different whether the equipment is leased or purchased The company's financial risk is diferent whether the man was purchased Elde Feedback Partially Correct Check My Work in training Check My Work (No more transitable) Ellis Enterprises is considering whether to lease or boy some necessary equipment it needs for a project that will last the next 3 years. If the firm buys the equipment, it will borrow $4,800,000 8.0 interest. The firm's tax rate is 35 and the firm's before-tax cost of debt is 8. Annual maintenance costsociated with ownership are estimated to be $400,000, and the equipment will be depreciated on a straight-line basis over 3 years. What is the annual sd-of-year lease payment in thousands of dollars foe * 3-year lease that would make the firm indifferent between buying or leasing the equipment (Suggestion: Delone era from dollars and work in thouundo Do not round your intermediate calealations. 0.52.260 2,599 O 31,695 5808 e 13,147