Underestimate the value of leased assets


Assignment:

Q1. Many financial analysts estimate the value of operating leases by discounting rental payments provided in the annual report at the cost of debt. Is this method likely to overestimate or underestimate the value of leased assets? Why?

Q2. Many companies securitized their accounts receivable before the financial crisis of 2008. Why did this occur? After the financial crisis, this practice largely stopped. Why?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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