1) Oman Plastic SAOG is a power generation company with a constant level of earnings which are expected to continue well into the future. The company's EBIT is 680,000 Rials per year which are expected to continue in perpetuity. The company's debt now stands at 2 million Rials. Assume debt to equity ratio is 2 and that unlevered cost of capital Ro is 22%. Cost of Debt is 12%. Assume there are no taxes. a) Calculate Oman Plastic's cost of equity capital? b) What is the Oman Plastic's WACC? c) Oman Plastic's financial consultant has recommended that the company can easily borrow another 8 million Rials for financing future expansion of the company. Assuming you are a major shareholder in the company, do you agree with the financial consultant's recommendation. If "yes" why, and if "no" why? Justify with reasons