Abstract This article presents comments of M. Chapman Findlay, III on Harold Wyman's article "Financial Lease Evaluation Under Conditions of Uncertainty," published in the July 1973 issue of the journal "The Accounting Review." The author suggests that it must be borne in mind that the savings on operating costs and the loss of the residual value are included in the cost of leasing model because they represent cash flows which would occur if the asset were owned and, as such, are opportunity costs of leasing. He suggests that the greater the dispersion of operating costs to be absorbed by the lessor or residual value, the greater the risk of owning the asset and, accordingly, the greater the desirability of a lease which would relieve the firm of these risks. He notes that, unfortunately, Wyman's technique attributes these risks to the lease. Thus, if a lease were offered on a piece of equipment with wildly uncertain operating costs and residual value, he suggests that the Wyman model would show the lease to be highly risky.

During the last 15 years, the Eurodollar deposit market has grown from perhaps $1 billion to a level now estimated to exceed $200 billion. This growth has prompted numerous arguments and investigations as to its cause [cf. 14, 22, 27], factors influencing it [cf. 24, 28, 29, 32], its import for U.S. banking and monetary policy [cf. 2, 38], its role in international financial market integration [cf. 1, 9, 39], and its impact on the internationalization of U.S. monetary policy [cf. 18, 23]. Over this same period of time, an increasing empirical interest has developed in the term structure of interest rates. Yet most empirical studies of the Eurodollar market [cf. 2, 28, 29, 32] have employed the 90-day Eurodollar CD rate as though it were “the rate of interest” in this market. This tendency has resulted more from the empirical ease of computing covered interest differentials in conjunction with the three–month forward exchange rate than from theoretical considerations [cf. 32, p. 7].