Basic finance questions


An increase in interest rates __________ the value of an intermediate-term loan.


Intermediate-term loans and traditional mortgage loans are constructed so that principal repayments __________ with time.


An increase in depreciation expense __________ the cost of a lease.


An increase in the residual value of the property __________ the attractiveness of leasing.


An increase in lease payments __________ cash outflows.


If a lease is capitalized, the firm’s assets __________ and the firm’s equity __________.


Leasing __________ the firm’s use of financial leverage.

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