Principles of Corporate Finance_ 12th Edition

● ● ● 652 bre44380_ch25_652-672.indd 652 10/05/15 12:54 PM Part 7 Debt Financing CHAPTER 25 Leasing M ost of us occasionally ren ...

Chapter 25 Leasing 653 bre44380_ch25_652-672.indd 653 10/05/15 12:54 PM When a lease is terminated, the leased equipment reverts ...

654 Part Seven Debt Financing bre44380_ch25_652-672.indd 654 10/05/15 12:54 PM only for a short time, it clearly makes sense to ...

Chapter 25 Leasing 655 bre44380_ch25_652-672.indd 655 10/05/15 12:54 PM If the lease is not affirmed but rejected, the lessor ca ...

656 Part Seven Debt Financing bre44380_ch25_652-672.indd 656 10/05/15 12:54 PM Some Dubious Reasons for Leasing Leasing Avoids C ...

Chapter 25 Leasing 657 bre44380_ch25_652-672.indd 657 10/05/15 12:54 PM lease payments. They may be right if off-balance-sheet l ...

658 Part Seven Debt Financing bre44380_ch25_652-672.indd 658 10/05/15 12:54 PM annuity with a present value of $98,150. We follo ...

Chapter 25 Leasing 659 bre44380_ch25_652-672.indd 659 10/05/15 12:54 PM Lease or Buy? If you need a car or limo for only a day o ...

660 Part Seven Debt Financing bre44380_ch25_652-672.indd 660 10/09/15 09:51 PM For operating leases the decision centers on “lea ...

Chapter 25 Leasing 661 bre44380_ch25_652-672.indd 661 10/05/15 12:54 PM We must emphasize that Table 25.2 assumes that Greymare ...

662 Part Seven Debt Financing bre44380_ch25_652-672.indd 662 10/05/15 12:54 PM Some leases are designed not to qualify as a true ...

Chapter 25 Leasing 663 bre44380_ch25_652-672.indd 663 10/05/15 12:54 PM The lease payments are contractual obligations like the ...

664 Part Seven Debt Financing bre44380_ch25_652-672.indd 664 10/05/15 12:54 PM The principle implies this formula: Net value of ...

Chapter 25 Leasing 665 bre44380_ch25_652-672.indd 665 10/05/15 12:54 PM 25-5 When Do Financial Leases Pay? We have examined the ...

666 Part Seven Debt Financing bre44380_ch25_652-672.indd 666 10/05/15 12:54 PM Leasing around the World In most developed econom ...

A lease is just an extended rental agreement. The owner of the equipment (the lessor) allows the user (the lessee) to operate th ...

An equivalent loan is one that commits the firm to exactly the same future cash flows as a financial lease. When we calculate th ...

h. Sale and lease-back i. Full-payout Match one or more of these terms with each of the following statements: A. The initial lea ...

670 Part Seven Debt Financing bre44380_ch25_652-672.indd 670 10/05/15 12:54 PM Year 0 Year 1 Year 2 Year 3 Lease cash flow +62,0 ...

Chapter 25 Leasing 671 bre44380_ch25_652-672.indd 671 10/05/15 12:54 PM of 50% (rather than 35%), (b) immediate 100% depreciatio ...