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capital lease or operating lease

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5. In your opinion would a companies prefer to use capital lease or operating lease in acquiring specialty equipment that the company intends to use and keep for almost all of its useful life?

6. What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this decision?

7. Under which circumstances would you prefer to lease versus purchase? What are the criteria that you would use to make this decision? What is the financial influence of this decision?

8. What are the components of the capital structure? What are the differences of these components? How do you determine the optimal mix of the components of the capital structure?

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5. In your opinion would a companies prefer to use capital lease or operating lease in acquiring specialty equipment that the company intends to use and keep for almost all of its useful life?
Companies will pick operating lease in acquiring specialty equipment that the company intends to use and keep for almost all of its useful life. The reason is that the company will want to install new equipment when its useful life was over. Companies prefer operating lease because it results in smallest payment of financial alternatives and helps bypass capital budget restraints. Operating lease is an off-balance sheet item and this improves the return on asset. The company's assets do not get inflated. During the initial years, the company does not get overburdened with lease payments.

6. What are some of the various lease options? When would you use one option over the others? What could be the financial influence of this ...

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This response presents a brilliant discussion on capital lease or operating lease

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