Required information

Problem $9-4$A $($Algo$)$ Explore the impact of leases on the debt to equity ratio $($LO$9-3,9-8)$

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Thrillville has $$40\mathrm{.}5$ million in bonds payable. One of the contractual agreements in the bond is that the debt to

equity ratio cannot exceed $2\mathrm{.}0.$ Thrillville's total assets are $$80\mathrm{.}5$ million, and its liabilities other than the bonds

payable are $$10\mathrm{.}5$ million. The company is considering some additional financing through leasing.

Problem $9-4$A $($Algo$)$ Part $2$

Calculate the debt to equity ratio. $($Enter your answers in millions $($i$.$e$.,$ $$5,500,000$ should be entered as $5\mathrm{.}5).$ Round ratio

answer to $2$ decimal places. Do not round intermediate calculations.$)$