What are some of the various lease options? When would you use one option over the others - 12255

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1. What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this decision? Under which circumstances would you lease versus purchase? What are the criteria that you would use to make this decision? What is the financial influence of this decision? (250 word)

 

2. What are the components of the capital structure? What are the differences of these components? How do you determine the optimal mix of the components of the capital structure? When looking at a company’s capital structure how does preferred stock fit in? What is off-balance-sheet financing and what are the good and bad things associated with off-balance-sheet financing? (250 word)

 

3. What are the components of a budget? Are the components the same for every organization? Why or why not? Should every organization forecast its operating budget? Why or why not? (250 word)

 

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1. What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this decision? Under which circumstances would you lease versus purchase? What are the criteria that you would use to make this decision? What is the financial influence of this decision? (250 word)

The different types of leases include operating lease, finance lease, capital lease, direct financing lease, first amendment lease, full payout lease, guideline lease, leveraged lease, net lease, open end lease, sales type lease, synthetic lease, tax lease, trac lease, and true lease (http://www.efsolutionsinc.com/Common_lease_types.htm). An operating lease is a lease where the ownership does not pass on to the lessee. The lessee pays a pre-determined amount each month to use the asset. This option is beneficial to the lessees since keeping the asset up to date, and replacing it with newer technology will be the responsibility of the lessor. A finance lease on the other hand is a lease where eventually the title to the asset passes on to the lessee. The lessee pays the price of the asset in installments until the installments are complet