Question: Ginger Corp. is thinking about accepting an 8-year leasing deal requiring a lease payment of $30,000 at the end of each year. The firm's

Ginger Corp. is thinking about accepting an 8-year leasing deal requiring a

Ginger Corp. is thinking about accepting an 8-year leasing deal requiring a lease payment of $30,000 at the end of each year. The firm's pre-tax cost of debt is 8% and its tax rate is 25%. What is the expected reduction in the firm's debt capacity due to the potential lease obligation?

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