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Creative entrepreneurs stepped in with new ideas about using energy equipment without the concomitant current expense of an outright purchase, and the equipment leasing industry was born. New technology spurred new financing concepts, which in turn have been adapted to many other areas of business. Likewise, where rising energy costs along with energy security and climate concerns have increased national interest in renewable electricity generation, there has been nationwide growth in the development and deployment of alternative energy generating systems. And, as in years past, the equipment financing industry is actively seeking ways to provide cost-effective means for financing and acquiring these assets. Opportunities are available to invest in renewable energy generation equipment ...
A study views strategies and initiatives through the lens of a business valuation model. In the language of finance, various strategies can be evaluated in terms of how they are expected to affect the overall value of a business. A free cash model is employed and applied to a disguised public rental and leasing company. The essence of the valuation model is relatively straightforward. Free cash flow determines a firm's value, along with current liquidity, and the riskiness of the firm's business operations, the latter of which is reflected in its cost of capital. Free cash flow is an estimate of the amount of cash generated by a business than can be used to pay dividends, repurchase stock, retire debt, make acquisitions, or otherwise used for discretionary purposes. Developing and using...
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