A firm currently with $$30$ million of current assets, $$70$ million of fixed assets, $$40$ of debt and $$60$ million of equity is considering leasing a new equipment with $$80$ million value using $2$ year operating lease. The useful life of the equipment is $10$ years. If the company enters $2$ year operating lease, how will the debt ratio look like?

Answer rating: 100% (QA)

Under the current accounting standards IFRS 16 operating leases with a term exceeding one year are r... View the full answer