Lease decision is financing decision for the lessee

Assignment Help Financial Management

Reference no: EM132016011

The lease decision is a financing decision for the lessee and an investment decision for the lessor.

True

False

The five main types of leasing are operating lease, financial lease, sale and lease back, combination lease, and authentic lease.

True

False

Capital leases must be shown directly on the lessee’s balance sheet. Operating leases must be disclosed in the footnotes of the balance sheet.

True

False

Leasing is a substitute for debt and it uses up a firm’s debt capacity. Assume a firm has a 40% debt and 60% equity target capital structure. If 60% of the firm’s assets are leased, remaining assets must be financed with equity?

True

False

Reference no: EM132016011

Questions Cloud

Brokerage commissions on these transactions : Assume that Jonas paid no brokerage commissions on these transactions.

Would the tax consequences have changed : Would the tax consequences have changed if Jenny had written the book herself?

What are the ethical issues regarding insider trading : Define what constitutes insider trading. What are the ethical issues regarding insider trading?

Types of hybrid securities-preferred stock-convertibles. : There are four types of hybrid securities: Preferred stock, Class A common stock, warrants, and convertibles.

Lease decision is financing decision for the lessee : The lease decision is a financing decision for the lessee and an investment decision for the lessor.

Public offerings are underwritten by an investment banker : A small percentage of initial public offerings are underwritten by an investment banker.

Market rental for spaces-residential and commercial rentals : Three types of market rental for spaces: residential, retail and commercial rentals.

Considered to be good income stock would satisfy : A stock that is considered to be a good income stock would satisfy which of the following conditions?

An income investor would prefer which type of relationship : An income investor would prefer which type of relationship? Stock returns tend to come evenly over an extended time period.

User Account

All Pages