12. Valuing financial leases (S26.4) Look again at the bus lease described in Table 26.2. a. What...

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12. Valuing financial leases (S26.4) Look again at the bus lease described in Table 26.2.

a. What is the value of the lease if Greymare’s marginal tax rate is Tc = 0.30?

b. What would the lease value be if the tax rate is 21%, but for tax purposes, the initial investment had to be written off in equal amounts over years 1 through 5?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:03 AM

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12. Valuing financial leases (S26.4) Look again at the bus lease described in Table 26.2. a. What...

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Principles Of Corporate Finance

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