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Capital vs. Expense question
I saw this in a Schweser exam…
Which of the following is an effect of capitaliztion:
1. Assset Turnover Higher
2. Debt to Equity Higher
3. Operating CF Lower
4. Net Income Variabilitiy over the life of the lease Lower
I chose 4, but the answer was 2. Anyone think this is incorrect? The answer stated the following “net income variability over the life of the lease will be higher if it is capitalized.” I thought the opposite was true. |
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发表于 2013-4-7 12:24
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