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Which of the following is/are good reason(s) for leasing? I. Taxes may be cancelled by leasing II. Leasing may increase certain types of certainty that

Which of the following is/are good reason(s) for leasing?

I. Taxes may be cancelled by leasing

II. Leasing may increase certain types of certainty that might increase the value of the firm.

III. Transaction costs will cease to exist for a lease contract than for buying the asset

IV. Leasing facilitates the management of the firm's cash flows.

V. Leasing provides 100 percent financing whereas loans require an initial down payment.

Select one: a. III only b. I, III, and IV only c. IV only d. I and III only e. I and IV only

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