What are the key advantages of leasing as compared to borrowing to acquire an asset? What are the key disadvantages of leasing?
Answer to relevant QuestionsWhat is a debenture? Why do you think that this is the most common form of corporate bond in the United States, but is much less commonly used elsewhere? What policies and payments comprise a firm’s dividend policy? Why is determining dividend policy more difficult today than in decades past? What do you think the typical stock market reaction is to the announcement that a firm will increase its dividend payment? Why? How does the fraction of NASDAQ-listed companies that pay regular cash dividends compare to the fraction of NYSE-listed firms that regularly pay dividends? What accounts for this difference? Suppose that a firm follows the matching strategy. Does this imply that the firm’s current assets will equal its current liabilities?
Post your question