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Classifying leases as capital leases

Problem:

Tiffany & Co., one of the world's most luxurious jewelers, classifies leases under "operating lease" expense. What affect would classifying leases as "capital leases" have on their bottom-line, return on equity, earnings per share, and balance sheet ratios? Would it change them? How or why?

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Finance Basics: Classifying leases as capital leases

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