Download This PaperPricing and Net Profit of Operating Lease
Managerial Finance - Volume 35, Issue 10, 2009, pp. 828-840
19 Pages Posted: 5 May 2013
Date Written: May 4, 2009
Abstract
This paper analyzes the impact of the so-called “asset risk” on optimal management of operating lease. We propose a tool to debunk some common mistakes in determining the value at which the leased asset can be retained by the lessee by paying a predetermined amount at contract maturity.
Keywords: lease, asset risk, option pricing theory
JEL Classification: G12, G21
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Balanced Budget Rules and Public Deficits: Evidence from the U.S. States
By Henning Bohn and Robert P. Inman
-
Capital Budgeting and Delegation
By Milton Harris and Artur Raviv
-
Capital Budgeting and Compensation with Asymmetric Information and Moral Hazard
By Antonio E. Bernardo, Hongbin Cai, ...
-
Budget Referendums and Government Spending: Evidence from Swiss Cantons
By Lars P. Feld and John G. Matsusaka
-
Decision Processes, Agency Problems, and Information: An Economic Analysis of Budget Procedures
-
Decision Processes, Agency Problems, and Information: An Economic Analysis of Budget Procedures
-
Economic Incentives and Political Institutions: Spending and Voting in School Budget Agenda
By Thomas Romer, Howard Rosenthal, ...
-
Allocation of Decision-Making Authority
By Milton Harris and Artur Raviv
-
Why the NPV Criterion Does Not Maximize NPV
By Elazar Berkovitch and Ronen Israel
-
By Ricardo Alonso and Niko Matouschek