Which of the following describes a sales and leaseback arrangement? 1) A sale and leaseback arrangement is a type of operating lease. 2) A sale and leaseback arrangement is a type of buyback loan. 3) A sale and leaseback arrangement is a type of financial, or capital, lease. 4) A sale and leaseback arrangement is a type of asset-based loan. ch of the following is correct regarding the most appropriate discount rate to be used in valuing the targeted firm? O 1) The appropriate discount rate to be used when calculating the NPV of a target company is the cost of equity of the acquiring firm. 2) The appropriate discount rate to be used when calculating the NPV of a target company is the cost of debt of the target company. 3) The appropriate discount rate to be used when calculating the NPV of a target company is the cost of equity of the target company. 4) The appropriate discount rate to be used when calculating the NPV of a target company is the cost of junk bond debt of the target company