(a) “Debt” means the obligations of the licensee or the named owner thereof which are fixed as to amount and which give the obligee rights as to assets of the licensee or any portion thereof which are superior to the rights of the licensee.

(b) “Equity” means the total book value of tangible and intangible assets which exceeds the amount of debt.

(c) “Letter of Acceptance” means a confirmation by the applicant that it agrees to be the license designee and commits itself to perform in accordance with statements, representations and procedures contained in its application.

(d) “Reasonable cost” means a cost which is reasonable if, in its nature or amount, does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.