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Required information [The following information applies to the questions displayed below.] Thrillville has $40.9 million in bonds payable. One of the contractual agreements in the
Required information [The following information applies to the questions displayed below.] Thrillville has $40.9 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed 2.0. Thrillville's total assets are $80.9 million, and its liabilities other than the bonds payable are $10.9 million. The company is considering some additional financing through leasing. 4-a. Will entering into the lease cause the debt to equity ratio to be in violation of the contractual agreement in the bond? O Yes O No 4-b. Determine your answer by calculating the debt to equity ratio after recording the lease. (Enter your answer in millions. (i.e., $5,000,000 should be entered as 5.5). Round ratio answer to 2 decimal places.) Total liabilities - Debt to Equity Ratio Stockholders' equity $ 29
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