Assume an aircraft costs $3,000,000 to purchase and $125,000 to lease. Compute the quarterly expenses for purchasing the aircraft with all cash, all loan, and all stock. Cash Loan Stock Lease Capital Required $3,000,000 $3,000,000 $3,000,000 $0 Cost of Capital* $0 Depreciation @ 1.75% per qtr. $0 Total Quarterly Expense $125,000

Note that Assume a CD would earn 5%; the loan rate is 9% per annum; stock price is currently $20 with a quarterly dividend of $ per share.