11. Heavy use of off-balance sheet lease financing will tend to * make a company appear less risky than it actually is because its stated debt ratio will appear lower. affect a company's cash flows but not its degree of risk. have no effect on either cash flows or risk because the cash flows are already reflected in the income statement. make a company appear riskier than it actually is because its stated debt ratio will be increased. 12. Beta Co. needs a new equipment that costs $4,500,000. It can either purchase the machine or lease it. If it decides to purchase the equipment, it will consider borrowing from a bank at 11% interest rate. The payments would be scheduled into 6 end-of-year- payments. However, if it decides to lease the equipment, it would pay 6 end-of-year payments of $1,150,000 each. Assume that the company has zero-tax rate due to tax loss carry- forwards. How much larger or smaller is the bank loan payment than the lease payment? * O $77,169 O $96,854 O $70,215 O $86,305