Question 1 USF Inc. has reported $1 billion in book value of equity and no debt, but has operating leases on all its stores. In the most recent year, the firm made $85 million in operating lease payments, and its commitments to make lease payments for the next five years and beyond are: Year Operating Lease Expense $90 million $90 million $85 million $80 million $80 million $75 million annually 6-10 Assume the firm's cost of borrowing is 7%. What is the estimated value of the firm's operating leases? Estimate the firm's debt-to-equity ratio