Question: 11. [Take-ot-pay agreement: follow-up to Problem 11-101 BASH also reports long-term purchase agreements for raw mate- rials, with the following required payments (in millions): 2000

11. [Take-ot-pay agreement: follow-up to Problem 11-101 BASH also reports long-term purchase agreements for raw mate- rials, with the following required payments (in millions): 2000 2001 2002 Capital lease MLPs 1,718 1,740 1,433 2003 2004 Thereafter Capital lease MLPs 1 292 1,370 12,128

a. Compute the present value of the requned payments, using an interest rate of 7%

b. Using the debt and equity data from Problem 11-10, compute an adjusted debt-to-equity ratio for BASF at December 31, 1999: (i) Using the result of part a only (ii) Using the result of Problem 11-10 (part

b) as well as part a

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