QUESTION $1$

A firm can grow only if the return on asset is $$ than WACC for the firm

$$ Smaller

Equal

Larger

$$ no impact

$q,$

$q,$

QUESTION $2$

Adjusted operating earnings increase as an operating lease is converted to debt by an amount equal to

$$ Operating Lease expenses

Depreciation charged on the leased asset now treated as an owned asset

Pretax cost of debt$*$ PV of Operating Lease

None of the above