Most appropriate analyst treatment of this operating lease

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Reference no: EM131551370

A firm has a debt-to-equity ratio of 0.50 and debt equal to $35 million. The firm acquires new equipment with a 3-year operating lease that has a present value of lease payments of $12 million. The most appropriate analyst treatment of this operating lease will:

a. increase the debt-to-equity ratio to 0.57.

b. leave the debt-to-equity ratio unchanged at 0.5.

c. increase the debt-to-equity ratio to 0.67.

Reference no: EM131551370

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