Finance

Online Chapter 15 LEASE FINANCING AND BUSINESS VALUATION encyclopaedism Objectives After studying this chapter, readers will be able to tie the two elementary types of take ons, explain how shoot funding affects financial statements and taxes, organise a basic shoot depth psychology from the perspective of the lessee, discuss the factors that hold value in ask transactions, explain in universal terms how businesses are valued, and conduct a business emilitary rating using discounted cash work and market multiple approaches. Introduction This chapter covers two orthogonal topics: lease financing and business valuation. Leasing is a substitute for debt financing and and so expands the range of financing alternatives available to businesses (and to individuals). However, leasing should be utilize solitary(prenominal) when it offers more or less advantage over conventional financing. We begin this chapter by discussing factors that implant to the la rge amount of leasing activity among healthcare businesses and how businesses analyze lease transactions. The valuation of entire businesses, as opposed to swell projects, is a fine step in the merger and acquisition process. In addition, business valuation plays an important role when one owner is bought out by other owners and when businesses are inherited.

The second crack of this chapter discusses two techniques spendd to value businesses. Leasing Basics Businesses generally own set(p) assets, but it is the use of buildings and equipment that is important, not their ownership. One way to restrain the use of assets is to testify debt or equity capital and so u! se this capital to buy them. An alternative way to retrieve the use of assets is by leasing. ahead the 1950s, leasing was generally associated with real realm (land and buildings), but today it is realistic to lease almost whatsoever kind of asset. Although leasing is used extensively across all industries, it is in particular prevalent in the health services industry, primarily in the...If you want to get a full essay, order it on our website: BestEssayCheap.com

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