4.1 Chapter Four Learning Outcomes

Learning Outcomes

  • Predict the occasional need for “External Financing” by means of the External Funds Needed Model.
  • Calculate the present value of a lease.
  • Evaluate the impact of Leasing on Financial Leverage.
  • Depreciate and Amortize the Lease Asset and Lease Obligation (liability).
  • Explore the effect of different rates of depreciation and amortization on the firm’s Equity.
  • Consider the financial benefits and disadvantages of a lease.
  • Recognize the place of a Financing (“Capital”) Lease within a firm’s overall Capital Structure decision-making.



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