What question did this study set out to answer?

The aim is to analyze and compare the financial implications of leases as a form of debt financing.

Quasi-Debt Analysis of Financial Leases.

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Quasi-debt analysis evaluates lease costs compared to loans, highlighting tax cash flow changes.

The aim is to analyze and compare the financial implications of leases as a form of debt financing.
Examined the operating effects of leases versus mortgages.
Calculated implicit interest within lease payments.
Analyzed cash flows after taxes for leases and alternative loans.
Discounted cash flows using the cost of capital.
Identified that leases significantly impact tax cash flows.
Found that traditional methods may not fully capture lease costs.
Showed that lease analysis can align closely with debt evaluation.

Thomas H. Beechy (1969) studied this question.

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