Financing alternatives 28 - Eastheimer and Company

Seminar paper from the year 2012 in the subject Business economics - Investment and Finance, grade: 9.0, Maastricht University (SBE), course: Intermediate Financial Management (IFM), language: English, abstract: Boudoir’s, Inc. is a profitable, growing company but has exhausted nearly all sources of financing, because they already pledged most of their assets as collateral to support growth. Theory assumes a match of the predicted assets useful life and its financing. Therefore a leasing agreement, especially taking into consideration the low amount, matches the cost of the asset with the corresponding cash flows produced by the asset. Furthermore, financing the new building and the fixtures for the new outlet with a leasing agreement provides an additional benefit because leasing agreements do not appear on the balance sheet of a company. In addition, lease payments are deducted....