Answer all please

18. The firm is considering either leasing or buying new $19,000 equipment. The lessor will charge $12,000 a year for a two-year lease. The equipment has a two-year life after which time it is expected to have a zero resale value. The firm uses straight-line depreciation, borrows money at 7% pre-tax, and has a tax rate of 21%. What is the net advantage to leasing? A) $720 B) $167 C) $319 D) $720 E) $1254

12. For some of the firms securities that can be viewed as options, which of the following is most likely to be true? A) All else equal, the higher the companys leverage, the more valuable the companys equity as an option. B) For convertible bond, the option to convert equals to the conversion value minus the value of the equivalent straight bond without the conversion option. C) Owning a warrant is the same as selling a call option. D) If the companys bond is considered risky, the companys equity can be viewed as a put option on the companys assets. E) Projects that raise the firms asset volatility will automatically increase the value of the firms equity and risky debt.