2. Assume a kayak oven costs $250,000 to purchase and $50,000 to lease. Compute the yearly expenses for purchasing the oven with all cash, all loan, and all stock. * To calculate the Cost of Capital, assume a Certificate of Deposit would earn 5% in the bank; the loan rate is 9% per annum; stock price for Kayak's 20,000 shares is currently $20 with a yearly dividend of 50 per share. CASH LOAN STOCK LEASE Capital Required $250,000 $250,000 $250,000 $0 Cost of Capital * Depreciation @ 5% per . Total Yearly Expense $0 $0 $50,000