Problem
1. Lease advantages. Hershey Foods Corporation is a high marginal taxpayer and a high creditworthy firm. Explain when it might make sense for Hershey to lease an asset. Under what conditions should Hershey lease its computer systems?
2. Security "sweeteners." For each of the terms below, indicate if the term represents a sweetener for the issuer or buyer of a security. Provide a short explanation.
A. Convertibility
B. Callable
C. Covenants
D. Sinking fund
E. Voting rights
F. Cumulative dividends.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.