If markets are efficient, leasing for the purpose of enhancing financial statement effects would be a good idea.

Question

Quizplus · Accepted Answer

In efficient markets, investors have access to all available information, including the effects of leasing on financial statements. Therefore, any attempt to enhance financial statement appearances through leasing would be quickly understood and factored into the company's stock price, negating any potential advantage.

If Markets Are Efficient, Leasing for the Purpose of Enhancing