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The company is considering changing the current capital structure to 40% debt and 60% equity, how would this impact the companys cost of capital? Demonstrate the impact this would have on your company specifically. Would you recommend this change? Why or why not?

As Reported Annual Balance Sheet

Report Date	12/31/2021		12/31/2020
Currency	USD		USD
Consolidated	Yes		Yes
Scale	Thousands		Thousands
Cash & cash equivalents	36,220,000		42,122,000
Marketable securities	59,829,000		42,274,000
Inventories	32,640,000		23,795,000
Accounts receivable, net & other current assets, gross	33,991,000		25,642,000
Less: Allowance for doubtful accounts receivable	1,100,000		1,100,000
Accounts receivable, net & other current assets, net	32,891,000		24,542,000
Total current assets	161,580,000		132,733,000
Land & buildings	81,104,000		57,324,000
Equipment	128,683,000		97,224,000
Equipment & internal-use software	-		-
Other assets	4,118,000		3,772,000
Construction in progress	24,895,000		15,228,000
Gross property & equipment	238,800,000		173,548,000
Less accumulated depreciation	-		-
Less accumulated depreciation & amortization	78,519,000		60,434,000
Property & equipment, net	160,281,000		113,114,000
Operating leases	56,082,000		37,553,000
Goodwill	15,371,000		15,017,000
Other assets	27,235,000		22,778,000
Total assets	420,549,000		321,195,000
Accounts payable	78,664,000		72,539,000
Accrued expenses & other current liabilities	51,775,000		44,138,000
Unearned revenue	11,827,000		9,708,000
Total current liabilities	142,266,000		126,385,000
Long-term lease liabilities	67,651,000		52,573,000
Notes	49,750,000		32,250,000
Credit Facility	803,000		338,000
Other long-term debt	-		586,000
Total long-term debt	50,553,000		33,174,000
Unamortized discount and issuance costs, net	(318,000)		(203,000)
Less current portion of long-term debt	1,491,000		1,155,000
Long-term debt	48,744,000		31,816,000
Long-term capital lease obligations	-		-
Long-term financing lease obligations	-		-
Construction liability	-		-
Tax contingencies	-		-
Long-term deferred tax liabilities	-		-
Other long-term liabilities	-		-
Other long-term liabilities	23,643,000		17,017,000
Common stock	5,000		5,000
Treasury stock, at cost	1,837,000		1,837,000
Additional paid-in capital	55,538,000		42,865,000
Foreign currency translation adjustments, net of tax	-		-
Unrealized gains (loss) on available-for-sale securities, net of tax	-		-
Accumulated other comprehensive income (loss)	(1,376,000)		(180,000)
Retained earnings (accumulated deficit)	85,915,000		52,551,000
Total stockholders' equity (deficit)	138,245,000		93,404,000

As Reported Annual Income Statement

Report Date	12/31/2021		12/31/2020
Currency	USD		USD
Consolidated	Yes		Yes
Scale	Thousands		Thousands
Net product sales	241,787,000		215,915,000
Net services sales	228,035,000		170,149,000
Total net sales	469,822,000		386,064,000
Cost of sales	272,344,000		233,307,000
Fulfillment expenses	75,111,000		58,517,000
Marketing expenses	32,551,000		22,008,000
Technology & content expenses	56,052,000		42,740,000
General & administrative expenses	8,823,000		6,668,000
Other operating expense (income), net	62,000		(75,000)
Total operating expenses & costs	444,943,000		363,165,000
Operating income	24,879,000		22,899,000
Interest income	448,000		555,000
Interest expense	1,809,000		1,647,000
Other income (expense), net	14,633,000		2,371,000
Total non-operating income (expenses)	13,272,000		1,279,000
Income (loss) bef income taxes- United States	35,879,000		20,219,000
Income (loss) before income taxes - International	2,272,000		3,959,000
Income (loss) before income taxes	38,151,000		24,178,000
Current income taxes - U.S. federal	2,129,000		1,835,000
Current income taxes - U.S. state	763,000		626,000
Current income taxes - international	2,209,000		956,000
Total current income taxes	-		-
Deferred income taxes - U.S. federal	155,000		(151,000)
Deferred income taxes - U.S. state	(178,000)		(190,000)
Deferred income taxes - international	(287,000)		(213,000)
Total deferred income taxes	-		-
Provision (benefit) for income taxes	4,791,000		2,863,000
Equity-method investment activity, net of tax	4,000		16,000
Net income (loss)	33,364,000		21,331,000
Weighted average shares outstanding-basic	10,120,000		10,000,000
Weighted average shares outstanding-diluted	10,300,000		10,200,000
Year end shares outstanding	10,180,000		10,060,000
Net income (loss) per share-basic	3.298		2.132
Net income (loss) per share-diluted	3.241		2.092
Total number of employees	1,608,000		1,298,000
Number of common stockholders	7,282		6,330
Foreign currency translation adjustments	(819,000)		561,000