What are the economic benefits of leasing vs ownership of assets?

Q: e. What is the cost of leasing? Do r

A: Leasing Cost: It is the present value of the lease costs annually discounted at the borrowing cost.…

Q: Explain Leasing Commissions and Related Costs?

A: Answer: Leasing commissions: Leasing commission is nothing but fees or premium paid in the form of…

Q: What are the major advantages of leasing a fixed asset rather than purchasing it?

A: A lease can be defined as an arrangement between the lessor(owner of the asset) and the lessee (user…

Q: What is asset and liability management?

A: The process of ALM (Asset and liability management) is the process used to manage financial risks…

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: Explain the ways in which property owners can structure leases in order to recover operating…

A: Leasing refers to acquiring an asset from a lessor in lieu of rental payments.

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

Q: explain motivations for leasing assets instead of purchasing them;

A: Introduction: Leasing is a mechanism by which the company may receive some capital assets for use,…

Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…

A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: What is the Fama-MacBeth Method in asset pricing assumptions?

A: Fama Mac Beth method is kind of regression method used for determining of parameters for like CAPM…

Q: lessee

A: Lease is a financial arrangement where the right to use the asset is given by the owner to another…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: How is the asset based valuation important in the business?

A: In case of mergers and acquisitions:: In the event that two companies are merging, or if a company…

Q: Define the term net advantage to leasing (NAL).

A: NAL It is the money that an entity or an individual saves from taking an asset on lease instead of…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: What are the objectives of a fixed asset system?

A: Fixed Assets:   The asset used by company for more than one year is known as fixed asset. Fixed…

Q: When is Leasing used?

A: Fixed assets are those type of assets which are being held by the business for longer period of…

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

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: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

A:

Q: Why might disinflation prove favorable to financial assets?

A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of…

Q: What is meant by “loss to lease”? Explain?

A: Loss to lease: It is the term used in Real Estate in leasing of property mainly apartment complexes,…

Q: Discuss the residual value of the leased asset. How does it impact the PV of rental payments…

A: Lease means a type of agreement in which one party gives its valuable assets to other party for a…

Q: How does a firm value an asset?

A: Assets means resources of the business that the business owns. It may be tangible assets or…

Q: How much is the initial cost of the asset?

A: Purchase price  Less: Trade discount/Rebate  Add: Import Duties  Add: Non refundable taxes  Add:…

Q: Explain Effective Cost of the Sale-Leaseback?

A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…

Q: What is net advantage to leasing (NAL)?

A: Leasing refers to an agreement between two parties to use asset of one by other in exchange of some…

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: asset turnover ratio?

A: Asset turnover ratio = Sales/((Total assets at the beginning of the year + Total assets at the end…

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: What are the key advantages and disadvantages of leasing?

A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…

Q: How does Leasing offer flexibility and a lower cost when disposing of the asset?

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

Q: What is the requirement of the general description of the leasing arrangement?

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

Q: Describe some economic factors that might provide an advantageto leasing.

A: Before we discuss the economic factors favoring leasing, let's understand the meaning of leasing. As…

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: Distinguish between physical asset markets and financial asset markets.

A: Physical Asset markets are markets where buyers and sellers transact in tangible goods which can be…

Q: What do the Asset management ratios measure?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: Why is it favorable to invest in different investable assets?

A: Diversification is very important in investment to achieve the consistency.

Q: What is asset specificity?

A: It is a term which is specially used to depict the inter party relationships amongst transactions