Advertising

Lease

• A long-term rental agreement, and a form of secured long-term debt.

 
 Embedded terms in definition
 Debt
Secured
 
 Referenced Terms
 Bargain purchase price option: Gives the lessee the option to purchase the asset at a price below fair market value when the Lease expires.

 Break even lease payment: The Lease payment at which a party to a prospective lease is indifferent between entering and not entering into the lease arrangement.

 Capital lease: A Lease obligation that has to be capitalized on the balance sheet.

 Capitalized lease: A financial (capital) Lease that has the present value of all its payments included as an asset and corresponding liability on the firm's balance sheet, as required by generally accepted accounting principles as set out in the CICA Handbook.

 Coverage ratios: Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and Lease obligations, including the interest coverage ratio and the fixed charge coverage ratio.Ratios that measure the firm's ability to pay certain fixed financing charges. Includes times interest earned ratio and the fixed-charge coverage ratio.

 
 Related Terms
 

<< Leaps Lease rate >>

Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

No pessimist ever discovered the secret of the stars, or sailed to an uncharted land, or opened a new doorway for the human spirit. - Helen Keller

Advertising



Copyright 2009-2019 GVC. All rights reserved.