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 Cost of Capital* Depreciation @ 1.75% per qtr. Total Quarterly Expense Cash $3,000,000 Loan Stock Lease $3,000,000 $3,000,000 $0 $0 $0 $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 10¢ per share.