What Is the Minimum Required Rate of Return on a Lease

question 43

Multiple Choice

What is the minimum required rate of return on a lease from a leasing company that has a tax rateof 45%, and a capital structure that consists of 85%% long-term debt with a cost of 8% and 15%equity with a cost of 15%?

• A) 4.98%
• B) 8.03%
• C) 6.65%
• D) 9.05%

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