Homework SourseWhich of the following statements about lease analyses is mo
Which of the following statements about lease analyses is most correct?
| A | The appropriate discount rate for the lessor is the lessor’s cost of equity. |
Solution
Net Advantage of leasing is an analysis about buy or lease teh assets. in Net Advantage of leasing analysis, purchase price of asstes and interest on debt, periodic lease payment, Tax rate, term f lease residual value of assets at end of lease period is considered.
Interest rate on debt for purchase an assets is use as discount rate in lease analysis. So, The appropriate discount rate for the lessee is the lessee’s cost of debt
Option (E) is correct answer.
