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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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