Question: I only got 4-b wrong. Please help & provide explanation. thank u! Required information [The following information applies to the questions displayed below) Thrillville has

 I only got 4-b wrong. Please help & provide explanation. thank
u! Required information [The following information applies to the questions displayed below)
Thrillville has $40 million in bonds payable. One of the contractual agreements
in the bond is that the debt to equity ratio cannot exceed
I only got 4-b wrong. Please help & provide explanation. thank u!

Required information [The following information applies to the questions displayed below) Thrillville has $40 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratio cannot exceed 2.0. Thrillville's total assets are $ 80 million, and its liabilities other than the bonds payable are $10 million. The company is considering some additional financing through leasing Required: 1. Calculate total stockholders' equity using the balance sheet equation (Enter your answer in millons rounded to 1 decimal place. (l.e. $5,500,000 should be entered as 5.5).) $ Assets Stockholders' Equity Liabilities 80.0 3 $ 30.0 50.01 2. Calculate the debt to equlty ratio. (Enter your answer in millions rounded to 1 decimal place. (.e., $5,500,000 should be entered as 5.5) Total liabilities 50.0 Debt to Equity Ratio Stockholders' equity $ 30.0 1.67 3. The company enters a lease agreement requiring lease payments with a present value of $15.0 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in millions (l.e. $5,500,000 should be entered as 5.5.).) View transaction list View journal entry worksheet No No Account Title Credit Debit 15.0 1 1 Lease Asset Lease Payable 15.0 4-a. Will entering into the lease cause the debt to equity ratio to be in violation of the contractual agreement in the bond? Yes O No 4-6. Determine your answer by calculating the debt to equity ratio after recording the lease. (Enter your answer in millions. (le. $5,000,000 should be entered as 5.5). Round ratio answer to 2 decimal places.) Total liabilities $ 50 Debt to Equity Ratio Stockholders' equity is 30 1.67

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