True or False (please answer all 3)

Consider the sale-leaseback of land. Lease payments for land are not tax deductible. Consider the financial leverage. The return before taking out additional loans is 10% and the incremental cost of debt is 11.5%. Then, there is positive leverage on the incremental funds. Suppose lenders cannot observe households' income because of information asymmetry. Then, high-income households take out mortgages with high prices (or interest rates) compared to the symmetric (or full) information economy