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Unformatted text preview: for the end of year X1. d. Compute the total liabilities to asset ratio and the longterm debt to assets ratio for Stores Inc for the end of year X1. e. Repeat c and d and compute the total liabilities to asset ratio and the longterm debt to assets ratio for both companies for the end of year X1 assuming the companies capitalize the leases. Problem Five: The effect of leases on financial ratios a. Retail Inc. *Present value of an annuity of $542 million for 2.847 periods (= $1,543/$542), then discounted back five periods. b. Stores Inc. *Present value of an annuity of $312 million for 2.795 periods (= $872 /$312), then discounted back five periods....
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 Fall '11
 Austin

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