CHAPTER 9 PROBLEMS Saved On January 1, 2021, Water Man AVX Submit Check my work 2 Super Slides has $20 million in bonds payable. As part of the contractual agreement with bondholders, the company guarantees to keep its debt to equity ratio below 2.0. Super Slides' total assets are $90 million and its liabilities, other than the bonds payable, are $40 million. The company needs additional assets and is considering purchasing these assets by issuing a note payable or by leasing. 8 02:54:24 Required: eBook 1. Calculate total stockholders' equity using the balance sheet equation. 2. What is the debt to equity ratio? 4-a. If the company can obtain the asset by issuing a $2 million note payable, Will issuing the note payable affect the debt to equity ratio? 4-b. If the company can obtain the asset by signing a lease agreement requiring payments with a present value of $2 million, Will the lease agreement affect the debt to equity ratio? 5-a. Calculate the debt to equity ratio assuming they issue a note payable. 5-b. Will issuing the note payable cause the debt to equity ratio to be in violation of the contractual agreement with bondholders? 5-c. Calculate the debt to equity ratio assuming they sign a lease. 5-d. Will signing a lease cause the debt to equity ratio to be in violation of the contractual agreement with bondholders? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4A Required 4B Required 5A Required 5B Required 5C Required 5D Calculate total stockholders' equity using the balance sheet equation. (Enter your answers in millions. (i.e., $5,000,000 should be entered as 5).) Stockholders' Equity Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4A Required 4B Required 5A Required 5B Required 5C Required 5D What is the debt to equity ratio? (Enter your answers in millions. (i.e., $5,000,000 should be entered as 5).) Debt to Equity Ratio = Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4A Required 4B Required 5A Required 5B Required 50 Required 5D Calculate the debt to equity ratio assuming they issue a note payable. (Enter your answers in millions. (i.e., $5,000,000 should be entered as 5).) With a note payable or lease of $2 million Debt to Equity Ratio Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4A Required 4B Required 5A Required 5B Required 5C Required 5D Calculate the debt to equity ratio assuming they sign a lease. (Enter your answers in millions. (i.e., $5,000,000 should be entered as 5).) With a lease of $2 million Debt to Equity Ratio