Recapitalizations involving debt securities may be undertaken for a variety of reasons. One common reason is:

Answer(s): B

Which of the following is NOT the advantage of leasing to the lessee?

The financing terms of the lease usually take into considerations the lessor’s ability to more efficiently use the tax advantages of asset ownership
Most leases are short-term operating leases, and that reduces the transaction costs (i.e. identifying qualified buyers and complications associated with equipment obsolescence) at the end of anticipated period of use
Installment sales agreements
There is less of a capital commitment so that equity and borrowing power are freed for the other financing

Answer(s): C