Should preferred stock be considered as equity or debt? Explain.
Who are the major purchasers of nonconvertible preferred stock? Why?
Briefly explain the mechanics of adjustable rate and market auction
preferred stock.
What are the advantages and disadvantages of preferred stock to the
issuer?
Define each of these terms: (1) sale-and-leaseback arrangements,
(2) operating leases, and (3) financial, or capital, leases.
What is off balance sheet financing, what is FASB #13, and how are
the two related?
List the sequence of events, for the lessee, leading to a lease
arrangement.
Why is it appropriate to compare the cost of lease financing with
that of debt financing? Why does the comparison not depend on
how the asset will actually be financed if it is not leased?
