Critically examine the cash flow characteristics of a finance lease, and compare it with the use of a bank loan or cash held on short-term deposit. Your answer should include some comment on the significance of a company’s anticipated tax position on leas

Answer Both Questions Question 1 Critically examine the circumstances under which there could be advantages to lenders and to borrowers respectively from issues of: (i) debentures with a floating rate of interest; (ii) zero-coupon bonds. Ignore taxation. (1500 words) Question 2 Critically examine the cash flow characteristics of a finance lease, and compare it with the use of a bank loan or cash held on short-term deposit. Your answer should include some comment on the significance of a company’s anticipated tax position on lease versus buy decisions. (1500 words) Guidelines: 1. A thorough literature review on topics must be evident. 2. Suitable organisational examples need to be given. These examples should be real-life business situations that illustrate the concepts of the subject. 3. Harvard style of referencing should be used; in-text and attach a list of all references. 4. Report format should be used. Pay attention to the rules of writing in relation to paragraphing, punctuation, spelling, etc. 5. Use headings for sections of your report where appropriate. 6. Attach a reference and bibliography list of all your sources Word Limit: 3000 Words for the whole assignment – excluding appendices and bibliography • The Harvard Style of Referencing system is COMPULSORY. • Indicate the sources of information by including all the necessary citations and references adopting the Harvard Referencing System. • Students who have been found to have committed acts of Plagiarism are automatically considered to have failed the entire semester. If found to have breached the regulation for the second time, you will be asked to leave the course. • Plagiarism involves taking someone else’s words, thoughts, ideas or essays from online essay banks and trying to pass them off as your own. It is a form of cheating which is taken very seriously. Take care of your work and keep it safe. Don’t leave it lying around where your classmates can find it.