CAPITAL LEASE effects

CFA Level I
#1

name the capital lease effects on NI, CFF, and CFO 60 seconds bonus: is debt to equity higher or lower for an OPERATING LEASE?

#2

NI lower CFF lower CFO higher debt to equity= higher

#3

lower

#4

getterdone Wrote: ------------------------------------------------------- > NI lower > CFF lower > CFO higher > > debt to equity= higher d/e is LOWER for an op lease

#5

crap was looking @ it from cap lease perspective, clearly a higher net income decreases ration, im a dummy

#6

getterdone Wrote: ------------------------------------------------------- > crap was looking @ it from cap lease perspective, > clearly a higher net income decreases ration, im a > dummy correct, op lease is just rent expense, no debt hit. so d/E is lower since the “E” includes retained earnings, which goes up when net income goes up Re = net income - dividends

#7

G night everyone

#8

getterdone Wrote: ------------------------------------------------------- > G night everyone night dude. im gonna hit the hay soon, too

#9

edit;nevermind

#10

later getter