The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in the balance sheet as follows: Use Aprendix D. The footnotes would state that the company had $26 million in annual capital lease obligations over the next 25 years. Lease payments are payable at the end of the year. a. Discount these annual lease obligations back to the present at a 8 percent discount rate. (Enter the answer in millions. Round "PV Factor" to 3 decimal places. Round the final answer to nearest whole million.) Annual lease obligations $ million b. Construct a revised balance sheet that includes lease obligations, as in Table 16-6. (Enter the answers in millions. Round "PV Factor" to 3 decimal places. Round the final answers to nearest whole million.) c. Compute total debt to total assets on the original and revised balance sheets. (Round "PV Factor" to 3 decimal places. Round the final answers to 1 decimal place.) d. Compute total debt to equity on the original and revised balance sheets.(Round "PV Factor" to 3 decimal places. Round the final answers to 1 decimal place.) e. In an efficient capital market environment, should the consequences of the CICA recommendation, as viewed in the answers to parts c and d, change stock prices and credit ratings? Yes No