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True or False? Lease payments are usually




True or False?;a. Lease payments are usually made at the start of each period. Thus first payment is usually made as soon as the lease contract is signed.;b. Some financial leases can provide off-balance-sheet financing.;c. The cost of capital for a financial lease is the interest rate the company would pay on a bank loan.;d. An equivalent loan?s principal plus after-tax interest payments exactly match the after-tax cash flows of the lease.;e. A financial lease should not be undertaken unless it provides more financing than the equivalent rates.;f. It makes sense for firms that pay no taxes to lease from firms that do.;g. Other things equal, the next tax advantage of leasing increases as nominal interest rates increase.


Paper#33610 | Written in 18-Jul-2015

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