QUESTION $2$

Assume an aircraft costs $$4,800,000$ to purchase and $$200,000$ to lease. Compute the quarterly expenses for purchasing the aircraft with all cash, all loan, and ald

calculating the cost of capital, assume a CD would earn $4\mathrm{.}0\%$ a year, the loan rate is $9\%$ per annum, and the stock price is currently $$17$ with a quarterly dividend of $10\%$ per

share.

Based only on the calculations above, which method of acquiring the aircraft is best?

Cash