Discuss the validity of the leasing statements


Discuss the validity of each of the following statements.

1) Leasing reduces risk and can reduce a firm's cost of capital

2) Leasing provides 100-percent financing.

3) Firms that do a large amount of leasing will not do much borrowing.

4) If the tax advantages of leasing were eliminated, leasing would disappear.

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Finance Basics: Discuss the validity of the leasing statements
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