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please answer all 2. Assume an aircraft costs $3,000,000 to purchase and $125,000 to lease. Compute the quarterly expenses for purchasing the aircraft with all
please answer all
2. 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. Capital Required Cash $3,000,000 Lease Loan $3,000,000 Stock $3,000,000 Cost of Capital* Depreciation @ 1.75% per qtr. Total Quarterly Expense $125,000 *Note: Assume a CD would earn 5%; the loan rate is 9% per annum; stock price is currently $20 with a quarterly dividend of 100 per share. 3. Why might you not want to use just stock to fund your capital investment? What other factors might you consider when evaluating the investment options? Which option (or combination of options) from the table in question 2 makes the most sense Step by Step Solution
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