Question 1 : In its annual report Driver Enterprises reported total debt of $718 and total assets of $2,859. In a footnote, the company also reported that it had future operating lease obligations of $161 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%.
Question 2 : Driver Enterprises reports 2017 earnings before interest and taxes (EBIT) of $380,296 and interest expense of $33,250. The company reported in a footnote that included in the operating expenses reported on the income statement were operating lease rental expenses of $126,000. It also reported the interest expenses of $26,993 were capitalized. The present value of the company's future lease obligations has been determined to be $355,646, based on footnote data and a discount rate of 12%. Calculate the fixed charge coverage ratio after incorporating the impact of the operating leases using the 1/3-2/3 method. Present your answer rounded to two decimal places, e.g., 20.00.
Question 3 : In its annual report Driver Enterprises reported total debt of $312 and total assets of $2,576. Reviewing a footnote you have found that the company has ten years of operating lease obligations of $37 per year. The company faces a cost of debt of 6%. Calculate the debt ratio for the company after incorporating the lease obligations using the present value method. Present your answer in percentage terms, rounded to two decimal places, e.g., 20.00%.
Question 4 : Driver Enterprises reports 2017 earnings before interest and taxes (EBIT) of $942,664 and interest expense of $62,158. The company explained in a footnote that included in the operating expenses reported on the income statement were operating lease rental expenses of $155,816. The company reported in a separate footnote that it had capitalized interest of $7,802 during the year. Calculate the interest coverage ratio. Present your answer rounded to two decimal places, e.g., 20.00.
Question 5 : In a footnote on its 2017 annual report Hewlett Packard reported the following operating lease obligations (in $ millions):
|
Year
|
Amount
|
|
2018
|
10,843
|
|
2019
|
9,442
|
|
2020
|
7,653
|
|
2021
|
4,072
|
|
2022
|
3,571
|
|
After 2022
|
19,038
|
Calculate the present value of the future operating lease obligations, assuming a discount rate of 8%.
Question 6 : In a footnote on its 2017 annual report Hewlett Packard reported the following operating lease obligations (in $ millions):
|
Year
|
Amount
|
|
2018
|
9,525
|
|
2019
|
8,160
|
|
2020
|
6,440
|
|
2021
|
5,665
|
|
2022
|
3,381
|
Calculate the present value of the future operating lease obligations, assuming a discount rate of 6%.
Question 7 : Driver Enterprises reports 2017 earnings before interest and taxes (EBIT) of $498,430 and interest expense of $30,477. The company explained in a footnote that included in the operating expenses reported on the income statement were operating lease rental expenses of $125,002. The present value of the company's future operating lease obligations has been determined to be $238,158, based on footnote data and a discount rate of 11%. Calculate the fixed charge coverage ratio after incorporating the impact of the operating leases using the present value method. Present your answer rounded to two decimal places, e.g., 20.00.
Question 8 : Driver Enterprises reports 2017 earnings before interest and taxes (EBIT) of $560,708 and interest expense of $60,797. The company explained in a footnote that included in the operating expenses reported on its income statement were operating lease rental expenses of $147,000. The present value of the company's future lease obligations has been determined to be $553,813, based on footnote data and a discount rate of 11%. Calculate the fixed charge coverage ratio after incorporating the impact of the operating leases using the 1/3-2/3 method. Present your answer rounded to two decimal places, e.g., 20.00.
Question 9 : In its annual report Driver Enterprises reported total debt of $669 and total assets of $1,909. Reviewing its footnote,you have determined that the present value of its future lease obligations to be $231. 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%.
Question 10 : In a footnote on its 2017 annual report Hewlett Packard reported the following operating lease obligations (in $ millions):
|
Year
|
Amount
|
|
2018
|
11,145
|
|
2019
|
9,683
|
|
2020
|
6,932
|
|
2021
|
5,755
|
|
2022
|
2,000
|
|
After 2022
|
8,000
|
Calculate the present value of the future operating lease obligations, assuming a discount rate of 8%.