Firm after incorporating the impact of the operating leases

Assignment Help Financial Management

Reference no: EM131610187

In its annual report Driver Enterprises reported total debt of $625 and total assets of $1,281. In a footnote, the company also reported that it had future operating lease obligations of $795 per year for each of the next 6 years. The firm pays 9% on its debt financing. Using the 1/3-2/3 methodology, what would be the debt ratio of the firm after incorporating the impact of the operating leases? Present your answer in percentage terms, rounded to two decimal places, e.g., 20.00%.

Reference no: EM131610187

Questions Cloud

Discuss the properties of the inheritance : When a derived-class object is destroyed, the destructors are called in the reverse order of the constructors.

Price of company stock or value of their shareholding : What is most important to investors: the number of a company’s shares they own, the price of the company’s stock, or value of their shareholdings in company?

Explain the function and operation of cisco switch : Explain the function and operation of Cisco switch and router operating systems and their specific licensing, management, and operational recovery procedures.

What was average weekly allowance of a fourth-grade student : In a recent year, the average allowance of a 9th-grade student was 9.66 dollars per week. What was the average weekly allowance of a 4th-grade student?

Firm after incorporating the impact of the operating leases : what would be the debt ratio of the firm after incorporating the impact of the operating leases?

What is nodebts wacc and asset beta : Nodebt Inc. is a firm with all-equity financing. Its equity beta is .80. What is Nodebt’s asset beta? What is Nodebt’s WACC?

Print rational numbers in floating-point format : Create a class called Rational for performing arithmetic with fractions. Write a program to test your class. Use integer variables to represent the private.

Traditional versus object-oriented design : Compare the object-oriented approach to design to the traditional approach. Provide an example of one (1) such project.

Operating leases reported in the lessees balance sheet : How are operating leases reported in the lessee’s balance sheet?

User Account

All Pages