Rambo Exterminator Company bought a Bug Eradicator in april of 2008 that procided a return of 7 percent. it was financed by debt costing 6 percent. in august mr. rambo came up with an entire bug colony destroying device that had a return of 12 percent. the chief financial officer mr. roach told him it was impractical because it would require the issuance or common stock at a cost of 13.5 percent to finance the purchase. is the company following a logical approach to using its cost of capital?