Lease Analysis: Costs of Owning, Debt and Equity
January 22nd, 2023
The lease analysis should compare the cost of leasing to the:
a. Cost of owning using debt.
b. Cost of owning using equity.
c. After-tax cost of debt to measure the effect of leasing on the cost of equity.
d. Average cost of all fixed charges.
e. Cost of owning using the weighted average cost of capital for the firm.
Discuss fully the reason for your choice to earn full credit.