Find the cost of capital

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In year 1 Laylor Company had revenues of $100,000, advertising expense of $22,000, depreciation of $15,000, and other expenses of $53,000. The advertising expense in year 1 is related to benefit the company for 2 years. The depreciation expense is related to the company's sole $60,000 asset, which is predictable to last 4 years. The cost of capital is 10%.

Reference no: EM1373661

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