MC – Advantages to Lessors Over Secured Loans
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which is NOT an advantage to lessors over secured lenders when the lessee is under bankruptcy?
Which is NOT an advantage to lessors over secured lenders when the lessee is under bankruptcy?
Given the present value of buying equipment, the real discount rate, and zero inflation, determine the break-even after-tax yearly lease payment.
Your numbers will vary.
When a firm sells an asset, in this case, an office building, but then leases the asset back in order to use it, this is called a what?
Determine the minimum acceptable lease payment for a lessor given that a computer will be depreciated straight-line to a zero salvage value. The problem assumes that the years over which the asset is depreciated is one less than the number of lease payments: for example 5 years of depreciation, but 6 lease payments.
Your numbers will vary.
Your firm will lease a magic box. You are given the cost of purchasing the box upfront, the lease payments, the borrowing rate, and the marginal tax rate, determine the NPV of the lease.
Your numbers will vary.
Given the lease payments for a new copier, the cost to buy it, and provided that it is depreciated straight line to a zero salvage, determine the NPV of the lease.
Your numbers will vary.
Given the annual lease payments and the tax rate, determine the annual tax shield from the lease payments.
Your numbers will vary.
Which is NOT a benefit to lessors over secured lenders if a lessee is in bankruptcy?
What is the approximate relationship between a small change in the value of the underlying stock and the corresponding change in an option’s price?
What is an unlikely justification for opting to lease rather than purchase?