Suppose Congress changed the tax laws in a way that (1) permitted equipment to be depreciatedover a shorter period, (2) lowered corporate tax rates, and (3) reinstated the investmenttax credit. Discuss how each of these changes would affect the relative use of leasingversus conventional debt in the U.S. economy.

Suppose Congress changed the tax laws in a way that (1) permitted equipment to be depreciatedover a shorter period, (2) lowered corporate tax rates, and (3) reinstated the investmenttax credit. Discuss how each of these changes would affect the relative use of leasingversus conventional debt in the U.S. economy.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 7Q

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Suppose Congress enacted new tax law changes that would: (1) permit equipment to be depreciated over a shorter period, (2) lower corporate tax rates,and (3) reinstate the investment tax credit. Discuss how each of these potential changes would affect the relative volume of leasing versus conventionaldebt in the U.S. economy
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