QUESTION 37 In the lease versus buy decision, leasing is often preferable a. because it has no effect on the firm's ability to borrow to make other investments b. because, generally, no down payment is required, and there are no indirect interest costs. oc because lease obligations do not affect the firm's risk as seen by investors. od because the lessee owns the property at the end of the lease term. because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the of lessee bought and owned the asset. QUESTION 38 A lease-versus-purchase analysis should compare the cost of leasing to the cost of owning, assuming that the asset purchased a. is financed with short-term debt. b.is financed with long-term debt. c. is financed with debt whose maturity matches the term of the lease. d. is financed with a mix of debt and equity based on the firm's target capital structure, i.e., at the WACC. e. is financed with retained earnings