This video covers the following learning objectives:

Learning Objectives Covered

General/All Certifications

✅ Explain the difference between leasing and purchasing assets
✅ Compare advantages and disadvantages of lease vs. buy decisions
✅ Understand hybrid instruments combining features of debt and equity
✅ Use Excel to analyze lease vs. buy scenarios with cash flow and NPV comparison

Canadian Securities Course (CSC)

✅ Identify hybrid securities, including convertible bonds and preferred shares
✅ Explain how hybrid instruments influence investor risk and return
✅ Recognize the role of leasing as a financing method within capital structure

Certified Financial Planner (CFP) – Canada

✅ Guide clients through lease vs. buy decisions for personal or small business assets
✅ Compare the financial and operational impacts of leasing vs. purchasing
✅ Evaluate the use of hybrid instruments for business financing considering control, risk, and cost

Financial Risk Manager (FRM)

✅ Assess how lease vs. buy decisions affect financial risk and balance sheet structure
✅ Analyze embedded risks and complexities in hybrid financing instruments
✅ Understand how hybrid securities influence leverage, liquidity, and credit risk

Chartered Financial Analyst (CFA) – Primarily Level 1 & 2

✅ Analyze lease vs. buy decisions using net present value (NPV) and cash flow techniques
✅ Evaluate the impact of lease vs. purchase on financial statements and capital structure
✅ Explain features, benefits, and risks of hybrid instruments, including convertible debt and preferred equity
✅ Assess how hybrid securities affect capital structure, risk exposure, and shareholder value
✅ Understand option-like components embedded in hybrid instruments and their valuation considerations