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In its annual report Driver Enterprises reported total debt of $625 and total assets of $1,281. In a footnote, the company also reported that it had future operating lease obligations of $795 per year for each of the next 6 years. The firm pays 9% on its debt financing. Using the 1/3-2/3 methodology, what would be the debt ratio of the firm after incorporating the impact of the operating leases? Present your answer in percentage terms, rounded to two decimal places, e.g., 20.00%.

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Financial Management, Finance

Category:- Financial Management
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