Which One of These Statements Is False

Which one of these statements is false?

A) Lenders are concerned about a firm's total liabilities including lease obligations.
B) Debt displacement occurs with leasing.
C) Less future debt can be raised for a growing firm when leasing occurs.
D) Leasing allows the lessee to increase the benefits of debt capacity.
E) Leases should be ignored when computing debt-equity or liability-equity ratios.

Correct Answer:

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