1. Why do you think it is easier for firms with weak credit positions to obtain lease financing than bank loan financing?
2. Under what circumstances might a firm prefer intermediate-term borrowing to either long- or short-term borrowing?
3. Discuss the advantages and disadvantages of the following types of term loans:
a. Those that require equal periodic payments
b. Those that require equal periodic reductions in outstanding principal
c. Balloon loans
d. Bullet loans.