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Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision

Publication ,  Journal Article
KELLER, TF; PETERSEN, RJ
Published in: Journal of Business Finance & Accounting
January 1, 1974

This note comments on the doubtful application of an economic concept of personal income to the non‐personal business enterprise situation. This paper presents a series of models which we believe properly reflect the relevant relationships in the lease or buy evaluation. The models present the proper cash flow variables for such an analysis and they present the impact on asset net present value of cost of capital and market risk assessment. Finally, the models reflect the simultaneous effect on asset and financial structure of the acceptance of a particular investment opportunity. Copyright © 1974, Wiley Blackwell. All rights reserved

Duke Scholars

Published In

Journal of Business Finance & Accounting

DOI

EISSN

1468-5957

ISSN

0306-686X

Publication Date

January 1, 1974

Volume

1

Issue

3

Start / End Page

405 / 414

Related Subject Headings

  • Finance
  • 3502 Banking, finance and investment
  • 3501 Accounting, auditing and accountability
  • 1502 Banking, Finance and Investment
  • 1501 Accounting, Auditing and Accountability
 

Citation

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KELLER, T. F., & PETERSEN, R. J. (1974). Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision. Journal of Business Finance & Accounting, 1(3), 405–414. https://doi.org/10.1111/j.1468-5957.1974.tb00872.x
KELLER, T. F., and R. J. PETERSEN. “Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision.” Journal of Business Finance & Accounting 1, no. 3 (January 1, 1974): 405–14. https://doi.org/10.1111/j.1468-5957.1974.tb00872.x.
KELLER TF, PETERSEN RJ. Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision. Journal of Business Finance & Accounting. 1974 Jan 1;1(3):405–14.
KELLER, T. F., and R. J. PETERSEN. “Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision.” Journal of Business Finance & Accounting, vol. 1, no. 3, Jan. 1974, pp. 405–14. Scopus, doi:10.1111/j.1468-5957.1974.tb00872.x.
KELLER TF, PETERSEN RJ. Optimal Financial Structure, Cost of Capital, and the Lease‐or‐Buy Decision. Journal of Business Finance & Accounting. 1974 Jan 1;1(3):405–414.
Journal cover image

Published In

Journal of Business Finance & Accounting

DOI

EISSN

1468-5957

ISSN

0306-686X

Publication Date

January 1, 1974

Volume

1

Issue

3

Start / End Page

405 / 414

Related Subject Headings

  • Finance
  • 3502 Banking, finance and investment
  • 3501 Accounting, auditing and accountability
  • 1502 Banking, Finance and Investment
  • 1501 Accounting, Auditing and Accountability