Learning Outcomes: In this sub-chapter, you will learn how to:


  1. Calculate the present value of a lease.
  2. Depreciate and Amortize the Lease Asset and Lease Obligation (liability).
  3. Explore the effect of different rates of depreciation and amortization on the firm’s Equity.
  4. Consider the benefits and disadvantages of a lease.
  5. Examine and Identify a firm’s optimal long-term financing option.
  6. Recognize the place of a Financing (“Capital”) Lease within a firm’s overall Capital Structure decision-making.



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Corporate Finance Copyright © 2023 by Kenneth S. Bigel is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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