18.2 Leasing companies often promote the following two benefits of leasing. Critique the merits of each hypothesized benefit. Leasing preserves a businesss liquidity because it avoids the large cash outlay associated with buying the asset Leasing (with operating leases) allows businesses to use more debt financing than would otherwise be possible because leasing keeps the liability off the books

The text generally described three approaches to business valuation: discounted cash flow, asset based, and multiple market approach. What are the differences, and what do you think are the relative advantages and disadvantages of each?