es may be cancelled by leasing sing may increase certain types of certainty that might increas the firm. saction costs will cease to exist for a lease contract than for sset sing facilitates the management of the firm's cash flows. sing provides 100 percent financing whereas loans require an

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following is/are good reason(s) for leasing?
I.
Taxes may be cancelled by leasing
II.
Leasing may increase certain types of certainty that might increase
the value of the firm.
II.
buying the asset
Transaction costs will cease to exist for a lease contract than for
IV.
Leasing facilitates the management of the firm's cash flows.
V.
Leasing provides 100 percent financing whereas loans require an
initial down payment.
Select one:
O a. IV only
O b. I and IV only
Oc. I and II only
O d. II only
O e. I, II, and IV only
Transcribed Image Text:Which of the following is/are good reason(s) for leasing? I. Taxes may be cancelled by leasing II. Leasing may increase certain types of certainty that might increase the value of the firm. II. buying the asset Transaction costs will cease to exist for a lease contract than for IV. Leasing facilitates the management of the firm's cash flows. V. Leasing provides 100 percent financing whereas loans require an initial down payment. Select one: O a. IV only O b. I and IV only Oc. I and II only O d. II only O e. I, II, and IV only
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