Heavy use of off-balance sheet lease financing will tend, Ask an Expert

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Heavy use of off-balance sheet lease financing will tend to

(a) make a company appear more risky than it actually is because its stated debt ratio will be increased.

(b) make a company appear less risky than it actually is because its stated debt ratio will appear lower.

(d) have no effect on either cash flows or risk because the cash flows are already reflected in the income statement.

(e) affect the lessee's cash flows but only due to tax effects.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92058371

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