Lessee analysis is the appropriate discount rate

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Reference no: EM131332881

1. One of the key issues in the lessee’s analysis is the appropriate discount rate.

a. What does lessee’s after-tax cost of debt mean?

b. When is residual value used?

2. What is a lessor’s analysis?

3. What is a leveraged lease?

4. Leasing is motivated by differentials between lessees and lessors. Four of the more common reasons for leasing are:

Reference no: EM131332881

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