Question
Page 360, Questions 1, 3-4 1)What are some economic factors that motivate leasing-that is what asymmetries might exist that make leasing beneficial to both lessors
Page 360, Questions 1, 3-4
1)What are some economic factors that motivate leasing-that is what asymmetries might exist that make leasing beneficial to both lessors and lessees?
3) Does leasing lead to increased credit availability?
4) What is your reaction to this statement: leasing is preferable to buying because it preserves the businesss liquidity?
Chapter 9
Page 371, Questions 1-2
1)What is the basic concept of the corporate cost of capital?
2)What financing sources are typically included in a firms cost of capital estimate?
Page 374, Question 1
What are some methods used to estimate a businesss cost of debt?
Page 388, Question 1, 3, 7 and 8
1)Describe the CAPM approach to estimating a businesss cost of equity
3)What are the three types of beta that can be used in the CAPM?
7)Is there a difference in the deb-cost plus risk premium model?
8) How would you choose among widely different estimates of R(Re)?
Page 394 Questions 1-2
1) What is the general formula for finding the CCC?
2)What weights should be used in the formula? Why?
Page 396, Question 1
1) Explain the economic interpretation of the CCC?
Page 399, Question 1
1) Explain the concept of divisional costs of capital.
Page 404, Question 1
1) What are the factors that affect the CCC estimate?
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
