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2. Efforts Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated useful life of the leased equipment was 10 years; the purchase price was $ 60,000; and the annual lease payment was $ 5,000. This lease should be classified as: a) An Operating Lease b) A Finance Lease c) Sale and Lease Back d) Leveraged Lease
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Asked 5/5/2011 10:59:33 AM
Updated 38 days ago|6/25/2021 12:47:44 AM
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User: 2. Efforts Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated useful life of the leased equipment was 10 years; the purchase price was $ 60,000; and the annual lease payment was $ 5,000. This lease should be classified as: a) An Operating Lease b) A Finance Lease c) Sale and Lease Back d) Leveraged Lease

Weegy: a) An Operating Lease
Expert answered|cavecilla|Points 257|

User: 3. 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.

Question|Rated good
Asked 5/5/2011 10:59:33 AM
Updated 38 days ago|6/25/2021 12:47:44 AM
1 Answer/Comment
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The lease analysis should compare the cost of leasing to the After-tax cost of debt to measure the effect of leasing on the cost of equity.

Added 38 days ago|6/25/2021 12:47:44 AM
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3. 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.
Weegy: c. After-tax cost of debt to measure the effect of leasing on the cost of equity User: 4. Operating leases usually have terms that include a. Maintenance of the equipment. b. Only partial amortization. c. Cancellation clauses. d. All of the above. e. Only answers ‘a’. and ‘c.’ above. 5. Which of the following statements about listing on a stock exchange is most correct? a. Listing is a decision of more significance to a firm than going public. b. Any firm can be listed on the NYSE as long as it pays the listing fee. c. Listing provides a company with some "free" advertising, and status as a listed company may enhance the firm's prestige. (More)
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Updated 66 days ago|5/27/2021 2:06:34 PM
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Operating leases usually have terms that include Maintenance of the equipment.

Added 66 days ago|5/27/2021 2:05:48 PM
This answer has been confirmed as correct and helpful.
The statements about listing on a stock exchange is most correct : Listing provides a company with some "free" advertising, and status as a listed company may enhance the firm's prestige.
Added 66 days ago|5/27/2021 2:06:34 PM
This answer has been confirmed as correct and helpful.
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