Solution-Agreements on the leverage and risk of the company

Agreements on the leverage and risk of the company

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Reference no: EM131182031

A) Some retail stores have lease agreements where their rental payment is a nominal amount plus a percentage of sales, rather than a fixed monthly amount. Discuss the effect of these lease agreements on the leverage and risk of the company.

B) Computer software companies traditionally have very little debt on their balance sheets. Discuss briefly the effects of taking on debt on the overall risk of the company, and why they may be reticent to do this.

Reference no: EM131182031

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Agreements on the leverage and risk of the company : A) Some retail stores have lease agreements where their rental payment is a nominal amount plus a percentage of sales, rather than a fixed monthly amount. Discuss the effect of these lease agreements on the leverage and risk of the company.

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Agreements on the leverage and risk of the company

Reference no: EM131182031

Reference no: EM131182031

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