Why might leasing be advantageous for both the lessor and the lessee? Group of answer choices If the lessor's tax rates are higher, the lessor can share some of its tax benefits with the lessee in the form of higher lease payments. The lessor can share some of the benefits related to lower transaction costs with the lessee in the form of lower lease payments. More than one of the other statements is correct. If the cost of capital is lower for the lessee, then the lessee can share some of the lower cost of capital with the lessor in the form of higher lease payments. None of the other statements is correct.
Why might leasing be advantageous for both the lessor and the lessee? Group of answer choices If the lessor's tax rates are higher, the lessor can share some of its tax benefits with the lessee in the form of higher lease payments. The lessor can share some of the benefits related to lower transaction costs with the lessee in the form of lower lease payments. More than one of the other statements is correct. If the cost of capital is lower for the lessee, then the lessee can share some of the lower cost of capital with the lessor in the form of higher lease payments. None of the other statements is correct.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 5P
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Question
Why might leasing be advantageous for both the lessor and the lessee?
Group of answer choices
If the lessor's tax rates are higher, the lessor can share some of its tax benefits with the lessee in the form of higher lease payments.
The lessor can share some of the benefits related to lower transaction costs with the lessee in the form of lower lease payments.
More than one of the other statements is correct.
If the cost of capital is lower for the lessee, then the lessee can share some of the lower cost of capital with the lessor in the form of higher lease payments.
None of the other statements is correct.
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