(Solution) - How does the position of an equipment lessor differ from -(2025 Original AI-Free Solution)

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How does the position of an equipment lessor differ from the position of a secured lender when a firm falls into bankruptcy? Assume that the secured loan would have the leased equipment as collateral. Which is better protected, the lease or the loan? Does your answer depend on the value of the leased equipment if it were sold or re-leased?