'Lease Versus Purchase Option Essay\r'

'In this essay I forget try to explain or discriminate and contrast lease versus purchase option. In this write up I bequeath talk ab give away what is deb backing, and will provide two examples. I will also talk about what is integrity funding and provide two examples and last which alternative detonating device structure is much opportune and why.\r\nIn put in to give two examples of what is debt financing I will give a brief description of what is debt financing. Debt financing is when a ships company borrows money that must be repaid but with interest. This does not dilute the ownership of the company. With that be said the two examples ar Issue Bonds and line of credit of Credit. In the line of credit, this is a bank contribute where a assembly line can draw out property whenever money is needed. In issue bonds the business can issue bonds as for of debt financing these bonds argon marketable securities. (ehow.com 2013)\r\nNow equity financing is gibe to ychan ge.com (in equity financing, money is exchanged for a manage of ownership in the business). The business in returns raises funds and does not incur in debt. The two types of equity financial is employee course ownership and private investors. The employee stock is when a company sells stock to the employee. The private investors are possible investor willing to invest their money in the company.\r\nWhich alternative capital structure is more advantageous? In my opinion and according to the definitions on my e-book I would have to say energetic-middle the reason for this would be because it is more advantageous for sm on the whole business. It balances the return and risk of capital.\r\n afterward looking at all the definitions and examples, trying to match and contrast lease vs. purchase is not that difficult. This all depends on what do you want and if it is in a companies perspective then one must lay claim into consideration the companies cash flow. For example if a company has lots of cash flow then buying is the option now if it wants to conserve capital for the approximative term then leasing is the best option. It all depends on what the company need at that particular time.\r\n'