The following questions are not related 1 IMAX Corporation obtains the use of most of its theatre properties through leases IMAX Corporation prefers operating leases over capital leases Why is this good idea Consider IMAX Corporation 's debt ratio 2 IMAX Corporation likes to borrow for longer perio...

1 Corporations prefer operating leases because they can avoid reporting ...

The following questions are not related. 1. IMAX Corporation obtains the use of most of its theatre

Question:

The following questions are not related.
1. IMAX obtains the use of most of its theatre properties through leases. IMAX prefers operating leases over capital leases. Why is this good idea? Consider IMAX Corporation's debt ratio.
2. IMAX likes to borrow for longer periods when interest rates are low and for shorter periods when interest rates are high. Why is this good business strategy?
3. Suppose IMAX needs to borrow $2,000,000 to open new theatres. The company can borrow $2,000,000 by issuing 8 percent, 20-year bonds at a price of 96. How much will IMAX actually be borrowing under this arrangement? How much must the company repay at maturity?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...