Basic finance questions

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1.

An increase in interest rates __________ the value of an intermediate-term loan.

2.

Intermediate-term loans and traditional mortgage loans are constructed so that principal repayments __________ with time.

3.

An increase in depreciation expense __________ the cost of a lease.

4.

An increase in the residual value of the property __________ the attractiveness of leasing.

5.

An increase in lease payments __________ cash outflows.

6.

If a lease is capitalized, the firm’s assets __________ and the firm’s equity __________.

7.

Leasing __________ the firm’s use of financial leverage.