A student made the following arguments about lessees and lessors 1. Firms will tend to buy assets that are more sensitive and require higher maintenance 2. A Lease may have value when the lessee and lessors have different tax rates 3. If bankruptcy procedures are complicated and costly then financial institutions may prefer to be lessors rather than lend the money to companies to buy the asset Which of the student's argument is correct? O a) Only 1 O b) Only 2 O c) Only 3 d) Both 1 and 2 O e) All the student's argument are correct