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JKCPA
JKCPA, CPA
Category: Finance
Satisfied Customers: 5883
Experience:  Bachelors degree and CPA with Accounting experience.
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From the lessees viewpoint, the relevant discount rate for

Resolved Question:

From the lessee’s viewpoint, the relevant discount rate for evaluating a lease versus buy decision is the __________.

A. cost of issuing new common stock
B. pretax cost of issuing debt
C. after-tax cost of issuing debt
D. lessor’s cost of debt
Submitted: 4 years ago.
Category: Finance
Expert:  JKCPA replied 4 years ago.
Hi,

Thanks for the question.

The answer is
C. after-tax cost of issuing debt

Hope this helps!

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