Which of the following statements is TRUE for a corporation with a high credit rating considering owning versus leasing corporate real estate?
A) The company should probably use a mortgage
B) The company can probably issue corporate debt at a more favorable rate
C) The company is probably better off leasing the property from someone with a lower credit rating
D) The company's credit rating does not effect the own versus lease decision
Correct Answer:
Verified
Q9: If the incremental cash flows from owning
Q14: Because real estate usually declines in value
Q21: The cash flows considered in a lease
Q22: It is estimated that corporate users control
Q24: The cash flows considered in a sale-leaseback
Q25: All other factors being equal,a company would
Q27: Which of the following statements is FALSE
Q27: Which of the following does NOT represent
Q28: Which of the following could be affected
Q31: When doing a sale versus lease analysis,how
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