Which of the following is NOT correct? Select one: A. Lease obligations do not a

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Which of the following is NOT correct? Select one: A. Lease obligations do not affect the riskiness of the firm B. A sale-leaseback arrangement is a type of financial or capital lease C. The full amount of the lease payment is deductible if the contract is an operating lease D. All of the above options are incorrect

An operating lease Select one: A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above
How much of its earnings a firm decides to pay out depends on Select one: A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above
Operating leases usually have terms that include Select one: A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above
Which of the following is NOT correct? Select one: A. Lease obligations do not affect the riskiness of the firm B. A sale-leaseback arrangement is a type of financial or capital lease C. The full amount of the lease payment is deductible if the contract is an operating lease D. All of the above options are incorrect

An operating lease Select one: A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above
How much of its earnings a firm decides to pay out depends on Select one: A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above
Operating leases usually have terms that include Select one: A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above
Select one: A. Lease obligations do not affect the riskiness of the firm B. A sale-leaseback arrangement is a type of financial or capital lease C. The full amount of the lease payment is deductible if the contract is an operating lease D. All of the above options are incorrect

An operating lease Select one: A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above
How much of its earnings a firm decides to pay out depends on Select one: A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above
Operating leases usually have terms that include Select one: A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above
A. Lease obligations do not affect the riskiness of the firm B. A sale-leaseback arrangement is a type of financial or capital lease C. The full amount of the lease payment is deductible if the contract is an operating lease D. All of the above options are incorrect

An operating lease Select one: A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above
How much of its earnings a firm decides to pay out depends on Select one: A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above
Operating leases usually have terms that include Select one: A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above
An operating lease Select one: A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above Select one: A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above A. has a lease term equal to 75% or more of the estimated property. B. is usually short-term and is often cancelable at the option of the lessee. C. must show up on the balance sheet. D. none of the above How much of its earnings a firm decides to pay out depends on Select one: A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above Select one: A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above A. Its targeted capital structure B. The cost and availability of external debt C. Investors' preferences regarding dividend payments D. All of the above Operating leases usually have terms that include Select one: A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above Select one: A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above A. maintenance of the equipment B. only partial amortization C. cancellation clauses D. all of the above

Explanation / Answer

C. The full amount of the lease payment is deductible if the contract is an operating lease

A. has a lease term equal to 75% or more of the estimated property.

C. Investors' preferences regarding dividend payments

B. only partial amortization
A. has a lease term equal to 75% or more of the estimated property.

C. Investors' preferences regarding dividend payments

C. Investors' preferences regarding dividend payments

B. only partial amortization
B. only partial amortization

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