Question: On June 1 , 2 0 2 4 , Florida National leased a building. The lease agreement calls for Florida National to make lease payments

On June 1,2024, Florida National leased a building. The lease agreement calls for Florida National to make lease payments of $3,618.18 each month for the next two years, with the first lease payment beginning June 30. The companys normal borrowing rate is 8%.
Required:
1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.)
2. Record the lease on June 1,2024.
Required:
1. Calculate total stockholders equity prior to the lease agreement.
2. & 3. Calculate the debt to equity ratio, prior to the lease being signed and immediately after the lease being signed.
4. Does the direction of the change in the debt to equity ratio typically indicate that the company has higher leverage risk?

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