Which of the following are important factors in determining the monthly lease price of an new car?
A) Purchase price or capitalized value
B) "Money factor" or interest rate embedded in the lease
C) Residual value of the car included in the lease contract
D) A, B and C are all key factors in determining the monthly lease payment
Answer: D
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A person enteres into a lease agreement for 1 year. At the end of the year, the lease expires, but the tenant does not vacate the property. The tenant would be considered a:
a. periodic tenant because the lease automatically renews b. tenant at will because no additional time period was specified c. tenant at sufferance because the tenant is breaking the law d. feehold tenant because the landlord failed to act
If you want to hedge and owe a firm a foreign currency in the future, you would
A) buy the foreign currency forward. B) sell the foreign currency forward. C) speculate on the possibility to not hedge. D) buy the currency now and deposit into a bank account until needed.