Need some help with these questions: 1. Discuss the pros and cons of leasing an

ID: 2414782 • Letter: N

Question

Need some help with these questions:

1. Discuss the pros and cons of leasing an asset vs. buying an asset.

2. Give examples of real life companies that have chosen to lease their major capital assets.

3. Discuss the benefits of financing through debt (loans) as opposed to equity (issuing stock).

4. Give examples of companies that have financed more heavily through either loans or equity

5. Bonds Payable - What does it mean when there is a discount on Bonds Payable, and what is a premium on Bonds Payable?

Answer 1

Pros and Cons of Leasing vs Buying

Pros

Cons

Answer 2

Examples Include Samsung, Hyundai etc

Answer 3

Financing through dept is a better Source of Finance due to Following Reasons

Answer 4

Companies Financed by Equity are

Apple Inc

Nokia

Ikea Etc

Answer 5

When Bond is Payable at Discount it means that investor will get an amount lower than the par value of bong at the maturity of bond.

Bond Payable on Premium is when Bond Holder gets higher than Bond Face Value at the time of Maturity.

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