QUESTION $7$

When Operating Lease is converted to an asset and a debt Net income

$$ is reduced by the amount of imputed interest.

is increased as the Interest expense is reduced

does not change

none of the above

$q,$

QUESTION $8$

Levered Beta increases as

Gross Debt increases

Tax rate increases

Tax rate decreases

Gross Debt increases and tax rate decreases

A and $C$