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Select Stores is a retail firm with no debt outstanding. However, the firm does have operating lease commitments of 100 million a year for the

Select Stores is a retail firm with no debt outstanding. However, the firm does have operating lease commitments of 100 million a year for the next 3 years (years 1-3), and 80 million a year for the following 3 years (years 4-6).

The pre-tax cost of debt is 7%.

Estimate the debt outstanding, including operating lease commitments.

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