You may come across several situations where you may need to decide whether to lease or to buy assets. You may have several opportunities where you may need to evaluate leases from either a lessee's perspective or a lessor's perspective. Thus, it is important to understand certain issues and benefits related to leases and the fine print in lease contracts. Based on your understanding of leases, which of the following statements are true? Statements True False If a company has a covenant that restricts the firm to take on more debt, the company could increase its leverage by leasing additional assets If you lease a car for five years, your lease payments will end after five years; but, if you finance a car through an auto loan for five years, your loan payments will continue indefinitely. Lease contracts in which residual values are very high are likely to have lower costs for leasing. O