Question: For the most recent financial year 2019, TLS reported operating lease expenses of $1,349 million, operating income (EBIT) of $3,702 million, and interest-bearing debt of

  1. For the most recent financial year 2019, TLS reported operating lease expenses of $1,349 million, operating income (EBIT) of $3,702 million, and interest-bearing debt of $15 billion. The following table shows its future lease payments.

Year Future Lease Payments in $m

1 947

2 360

3 370

4 375

5. 350

5-10 278.8 per year

Assume the company's pre-tax cost of debt is 5.8%, and the effective tax rate is 30%.

(i) What is the total debt of the company after reclassifying

operating leases as debt?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Ryan and Blake Lively are married filing jointly taxpayers. Ryan's birthdate is August 10, 1982 and Social Security number is 434-14-4448. Blake's birthdate is March 19, 1983 and their Social...

Q:

I need the following homework exercise completed. All of the information is within the attached files. I require no explanations, just the answers. Part 1: Finding information: Each of the following...

Q:

For this assignment, you will read the Electrolux and GE Appliances case study, which offers an analysis of the Electrolux?s valuation process during its acquisition of GE Appliances in August of...

Q:

A. Review the FASB Codification and determine the specific codification citation that a company would reference for: 1. Initial measurement of stock options. 2. How stock dividends/splits in the...

Q:

Hi, Can you take a look at the attached material and let me know if you can help me with it and show all your work. The question is in the JPG file and you will need the Excel workbook and Word doc...

Q:

COMPANY MERCURY NZ PEER VALUATION( COMPANY INDUSTRY PEER Market PRICE & FREE RISK RATE Part 1: Capital Structure a) Identify the company's debts, in a table list each debt, the amount of that debt...

Q:

answer the all question please equired Homework Questions The concept of earnings power is the long-term (3 to 5 year) expectation of the company's earnings after any near-term anomalous behavior has...

Q:

answer the all question please equired Homework Questions The concept of earnings power is the long-term (3 to 5 year) expectation of the company's earnings after any near-term anomalous behavior has...

Q:

Attached is the document to use as a resource. Write a 1,050- to 1,750-word paper in which you answer the following questions: What does the Consolidated Statements of Earningsthe income...

Q:

Resources: Appendix A: The Home Depot, Inc. Annual Report in Fundamentals of Financial Accounting Write a 1,050- to 1,750-word paper in which you answer the following questions: What does the...

Q:

Resources:Appendix A, The Home Depot, Inc. Annual Report inFundamentals of Financial Accounting Writea 1,050- to 1,750-word paper in which you address the following:...

Q:

Provide 2 examples of crimes for which the state court has jurisdiction, and 2 examples of crimes for which the federal court has jurisdiction. Why does each have jurisdiction for the crimes you have...

Q:

Leslie placed this ad in the Collector Car Monthly. 1957 Chevrolet Nomad station wagon. Tropical Turquoise, 6 cyl. auto, PS, PW, AM/FM, repainted, rebuilt transmission, restored two-tone interior....

Q:

5 e . What would you most recommend to Sophia to improve her credibility? What would you most recommend to Sophia to improve her credibility? Multiple Choice Have a mentor help overcome common...

Q:

Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of acquisition, SSCs current assets had a book value of $20 million, its noncurrent assets had a book value...

Q:

client with celiac disease asks for a nutrition plan, what should the trainer recommend? Refer to a dietician 3-day food log to prescribe meal plan A templated meal plan Give a breakdown of...

Q:

Which of the following is the recommended exercise intensity level for a client with Type I diabetes? Less than 40% MHR 40-54% MHR 55-85% MHR More than 86% MHR

Q:

Which of the following requires constant agonist-antagonist muscle contractions? Core integration Postural development Dynamic balance Neuromuscular strength

Q:

Give reactions to the following statement: Filipinos' reaction in manifestations of popularity

Q:

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Q:

24. LO.3, 5 Dino contributes to charity some tangible personal property that he had used in his business and depreciated. At the date of the donation, the property has a fair market value greater...

Q:

22. LO.3, 5 Mary receives tangible personal property as a gift. The property was depreciated by the donor, and Mary will also depreciate it. At the date of the gift, the property was worth more than...

Q:

25. LO.3, 5 Desiree contributes to her wholly owned corporation some tangible personal property that she had used in her sole proprietorship business and depreciated. At the date of the contribution,...