Which of the following statements about lease analyses is mo

Which of the following statements about lease analyses is most correct?

The appropriate discount rate for the lessor is the lessor’s cost of equity.

The appropriate discount rate for the lessor is the lessor’s corporate cost of capital.

The appropriate discount rate for the lessor is the lessor’s cost of debt.

The appropriate discount rate for the lessee is the lessee’s corporate cost of capital.

The appropriate discount rate for the lessee is the lessee’s cost of debt.

Solution

Correct statement :

The appropriate discount rate for the lessor is the lessor’s corporate cost of capital.

So answer is b) The appropriate discount rate for the lessor is the lessor’s corporate cost of capital.