Describe some economic factors that might provide an advantageto leasing.

Q: What will be the Return from Owning versus Leasing explain with example?

A: Return from owning an asset: The first benefit of owning an asset is that individuals can use an…

Q: Define cost of borrowing.

A: Company needs to complete the goal set initially by the top level of management. These goals include…

Q: Why is the cost of financing with a sale-leaseback essentially the same as the return from…

A: Introduction: Financing costs are nothing but the interest and other costs that the company incurred…

Q: What is a sale-and-leaseback transaction?

A: Sale and leaseback is a deal in which the owner of an asset trades an asset, typically real estate,…

Q: What is the concept of sale-leaseback agreement?

A:

Q: What are the advantages of lease?

A: A lease is a contract under the terms under which one party agrees to rent property owned by another…

Q: Explain Lease-versus-Own Analysis?

A: Owning is the right of an entitlement to an asset by purchasing it while leasing is the contract by…

Q: What is the difference between an “operating” and a “capital” lease? In easy terms please!

A: The criteria for defining the lease as a capital lease or operating lease   As per the notes issued…

Q: Why is it appropriate to compare the cost of lease financing with that of debtfinancing?

A: Cost of lease financing is the cost that is bear by the lessee who have owned the right from the…

Q: Describe the concept of direct financing lease.

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Define Finance/Sales-Type Leases.

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Is leasing good for individuals? Why or Why not?

A: The answer for the theory question on leasing is discussed hereunder : A lease is a contractual…

Q: Explain the nature, economic substance, and advantages of lease transactions.

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: Explain briefly what working capital and working capital management are and what they do. Explain…

A: The financial Ratios will be calculated by taking the numerical values that are taken from the…

Q: What are the pre-requisites of having a successful finance leasing?

A: Finance  leasing is the process wherein the finance company owns the asset legally throughout the…

Q: Does leasing lead to increased credit availability?

A: Answer: Leasing is a mechanism by which the company may receive such capital assets for use, through…

Q: Why might refinancing be considered an alternative to a sale-leaseback?

A: Introduction: The given question is related to the concept of real estate finance and investments.…

Q: What are the types of agreement related to sale-leaseback agreement?

A: Sale and Leaseback Agreement is a kind of financial transaction. This is a situation that arises…

Q: What is passive income? Explain and give examples.

A: Passive Income  An income from a source which is somewhat diverse than  a contractor or an employer…

Q: What effect does leasing have on a firm’s balance sheet?

A: Introduction: Leasing is nothing but a mechanism by which the company can receive some capital…

Q: Leasing Cost Why the aftertax borrowing rate is the appropriate discount rate to use in lease…

A: Lease evaluation is the process where financial lease is evaluated on the basis of its feasibility…

Q: From the borrower’s standpoint, what are the advantages and disadvantages ofsecuring a loan?

A: Secured loans means offering an asset or  property to the lender as a collateral against the funds…

Q: Define Loan Refinancing?

A: Introduction: A loan refinancing permits a debtor to replace their present obligation of debt with…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: Define purchase commitments. What is the advantage(s) of these agreements to buyers?

A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…

Q: What are the disadvantages of lease?

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular…

Q: Define sale-and-leaseback

A: sale-and-leaseback

Q: Explain the recognition of profit on a finance lease transaction for lessorswho are manufacturers or…

A: A lease can be defined as a contract or agreement that allows the lessee to pay a certain amount of…

Q: Explain the Effect of Below-Market Financing on Property Prices?

A: When interest rate for financing the property is less than the normal interest rate in economy, it…

Q: Define Seller Financing?

A: Seller financing : Seller financing is real estate agreement which means seller financing the real…

Q: What is leasing? Explain the process of leasing’s Underwriting process of Tenants.

A: Lease can be defined as a right to use equipment or capital goods on payment of periodical amount…

Q: what will be the Market Leasing Assumptions with Renewal Probabilities?

A: Market leasing assumption is a very important assumption which is used in calculating the value of…

Q: Which are the Factors Affecting Own-versus-Lease Decisions?

A: Owning an asset involves purchase of the asset using own or borrowed sources of funds, whereas…

Q: explain the unique characteristics of the asset class, their associated risks and potential returns.…

A: The investments can be made using different assets basing on the risk capability and investment…

Q: Explain briefly what the terms working capital and working capital management imply. Explain the…

A: The Answer:

Q: Briefly discuss the similarities and differences between GAAP and IFRS when it comes to leasing…

A: This question tells about when it comes to leasing accounting, there are certain parallels and some…

Q: What factors would tend to make leasing more desirable than owning?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: Define the term Lease Financing?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: Murabaha financing and leasing

A: In Murabahah financing, Islamic banks are making a contract called purchase order accompanied with…

Q: What is financial lease?

A: Lease refers to the contract under which one party agrees to rent a property that is owned by…

Q: What is meant by a derivative investment

A: Derivative is a contract which allows its parties to buy/sell an underlying asset as per the…

Q: Define each of the following terms:h. Net advantage to leasing (NAL)

A: Introduction: The term leasing is a process by which lessee will be allowed to use the asset for a…

Q: Discuss the accounting and reporting requirements for leasing contracts with unique characteristics.

A: Given : This question explains about the accounting and reporting requirements for leasing contracts…

Q: Explain the meaning of the terms working capital and working capital management in a succinct…

A: Every business requires a sufficient amount of capital and working capital to ensure that the day to…

Q: Explain the Market Value of a Loan?

A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.