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Lease Analysis: Costs of Owning, Debt and Equity

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The lease analysis should compare the cost of leasing to the:
a. Cost of owning using debt.

b. Cost of owning using equity.

c. After-tax cost of debt to measure the effect of leasing on the cost of equity.

d. Average cost of all fixed charges.

e. Cost of owning using the weighted average cost of capital for the firm.

Discuss fully the reason for your choice to earn full credit.

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The solution explains the correct alternative from the given options

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The correct answer is
a. Cost of owning using debt.

The lease is more ...

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