Which of the following statements reflect a generally valid argument to explain how leasing an asset may provide an advantage to purchasing the same asset?

Group of answer choices

(a) Finance leases are generally not required to be capitalised on a firm's balance sheet and hence the debt capacity of the firm is not affected by the leases.

(b) Where asset users pay tax at an effectively low rate, it may make sense for them to acquire the asset via a lease from a lessor that pays tax at a higher rate.

(c) Where asset users find a lessor that has some advantage in purchasing the asset at a lower price.

(d) (a) and (b)

(e) (b) and (c)

Suppose that the price of IPO shares is equally likely to increase or decrease by 10% on the first day of trading. Assume also that informed investors know which IPOs are underpriced so that they oversubscribe to those IPOs. As a result, an uninformed investor will receive only 25% of their subscription in underpriced IPOs while receiving the full 100% of their subscription in overpriced IPOs. What would be the expected rate of first-day return for an uninformed investor?

Group of answer choices

(a) -5.0%

(b) -3.75%

(c) -1.25%

(d) -1.875%

(e) 2.5%

only need answer, no more explanation