3. Explain why a dollar of lease financing displaces a dollar of conventional debt financing

the dollar paid for the lease is then not available to pay for a debt the lease payment is required to have continued use of the leased asset O a missed lease payment can lead to a lawsuit for the missed payment in a similar way that a missed debt payment can lead to a lawsuit for the missed payment the leased asset is the collateral for the lease financing, in the same way that all debt financing must have collateral A and B A and C A and D B and C B and D C and D all but A all but B all but C all but D all are true