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leasing

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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November 19, 2012 at 5:52 pm #55496
patnar
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how does leasing affect the gearing of a company
November 19, 2012 at 6:50 pm #107918
John Moffat
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Leasing involved committing to fixed payments.
The reason that gearing creates more risk is because of the fixed interest payments, and so fixed lease payments create risk in exactly the same way.
Have you watched my lecture on gearing?
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