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COST OF PROPERTY, PLANT, AND EQUIPMENT
Joe Schultz, Inc., purchased six acres of land for $30,000. Mr. Schultz is uncertain about what other expenditures in relation to this purchase he should include in the cost of land. From the following list, choose what expenditures Mr. Schultz should include and total them.
Purchase price
$30,000
Legal fees related to purchase
1,000
Removal of old warehouse
8,000
Planting shrubs along road
1,500
Interest on loan to purchase property
3,000
Realtor fee
1,200
The security market line indicates that a 5% premium above the risk-free rate is desirable. If U.S. Treasury bills are paying 2%, estimate the cost of common stock capital.
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question general company informationmargaret brown and joel lee each own 50 percent of designs inc. with no other class
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