Super Slides has $20 million in bonds payable. As part of the contractual agreement with bondholders, the company guarantees to keep its debt to equity ratio below 2.0. Super Slides' total assets are $90 million and its liabilities, other than the bonds payable, are $40 million. The company needs additional assets and is considering purchasing these assets by issuing a note payable or by leasing.

Required:

1. 5-a. Calculate the debt to equity ratio assuming they issue a note payable.
2. 5-b. Will issuing the note payable cause the debt to equity ratio to be in violation of the contractual agreement with bondholders?
3. 5-c. Calculate the debt to equity ratio assuming they sign a lease.

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4A Required 4B Required 5A Required 5B Required 50 Required 5D Calculate the debt to equity ratio assuming they issue a note payable. (Enter your answers in millions. (i.e., $5,000,000 should be entered as 5).) With a note payable or lease of $2 million Debt to Equity Ratio Total liabilities Stockholders' equity 0.73 $ 22 $ 30 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4A Required 4B Required 5A Required 5B Required 5C Required 5D Calculate the debt to equity ratio assuming they sign a lease. (Enter your answers in millions. (i.e., $5,000,000 should be entered as 5).) With a lease of $2 million Debt to Equity Ratio Stockholders' equity 60 % $ 30 Total liabilities $ 2.00 X