What is sun coast''s current debt ratio

Reference no: EM131176083

Sun coast Healthcare is planning to acquire a new x-ray machine that costs $200,000. The business can either lease the machine using an operating lease or buy it using a loan from a local bank. Sun coast's balance sheet prior to acquiring the machine is a follows:

a. What is Sun coast's current debt ratio?

b. What would the new debt ratio be if the machine were leased? If it is purchased?

c. Is the financial risk of the business different under the two acquisition alternatives?

Reference no: EM131176083

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