Question
9. (Calculatingaleasediscountrate)U.S.Aluminumovercollateralizesitssecureddebtby25%.So the asset value is 125% of the secured debt and the secured debt is 100/125 = 4/5 = 80% of asset value. If
9. (Calculatingaleasediscountrate)U.S.Aluminumovercollateralizesitssecureddebtby25%.So the asset value is 125% of the secured debt and the secured debt is 100/125 = 4/5 = 80% of asset value. If U.S. Aluminums secured borrowing rate is 9%, and its unsecured borrowing rate is 11%, what discount rate should be used to compute the net advantage to leasing?
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American Commerce And Finance
Authors: Henry Rand Hatfield
1st Edition
1176176927, 9781176176928
