easy · Corporate Credit Analysis cap-structure

Sierra Corp has an annual rent expense of $30M and reported EBITDA of $150M.

If an analyst is adjusting the financials to capitalize these operating leases using a 7x multiple, what is the lease-adjusted debt added to the balance sheet?

  1. $30M
  2. $210M
  3. $180M
  4. $1,050M

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