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.
Given the promised coupon, the principal amount the probability of default, and the payment under default, determine the expected payment from the bond.
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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.
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Given the bond’s promised coupon in dollar terms, the principal payment and the price that the investor buys the bond for, determine the bond’s promised yield.
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Given the annual lease payments and the tax rate, determine the annual tax shield from the lease payments.
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Determine the value of a futures contract on the Standard and Poor’s Index given the current level of the index, the dividend yield, and the risk-free rate.
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Given the number of burgers that will be produced, determine the fixed costs, variable costs, and the average cost per burger.
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Given the firm’s profits, sales, and degree of operating leverage, estimate the impacts on profits if sales turn out differently than expected.
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Assuming the firm is financed by debt and equity, and given a grid of values with missing numbers, find rE, rA, βD and βA.
Your numbers will vary.