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Learning Objectives. Outline some of the features of innovative forms of raising long-term financing, including zero-coupon rate bonds, floating rate bonds and real return bonds. (LO 4 )
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Learning Objectives • Outline some of the features of innovative forms of raising long-term financing, including zero-coupon rate bonds, floating rate bonds and real return bonds. (LO4) • Outline the characteristics of long-term lease financing that make it an alternative form of long-term financing. (LO5) • Analyze a lease-versus-borrow-to-purchase decision. (LO6)
LO6 Table 16-6Net Present Value of Borrow-Purchase *$5,000 x 10% = $500
LO6 Table 16-7Net Present Value of Operating Lease Outflows
LO6 Table 16-8Summary of lease versus borrow to purchase analysis