The cost of capital for Leveraged Industries, Inc., is therefore 12.9%. This weighted average has combined the individual costs of capital (18.5%, 14.9%, and 11.2%) into a single number. There would have been no change in this result (12.9%) if you had combined the two bond issues int...
If a rental car company bought a new Ford Fusion at a steep fleet discount and depreciates it 2% a month for two years, it will have taken the book value down by 24% off its cost. So it might break even selling it at auction after two ye...