3. Assume that a campany has debt - equity ratio of 1.2 and after tax cost of debt is 5.7% and Weighted Average Cost of Capital is 8.9 percent. What is the value of cost of equity? Is it cheaper to use debt or equity?

4- The campany have the following estimates for the project.

Price:	2,500 USD per unit
Variable Cost:	1,500 USD per unit
Fixed Cost:	400,000 USD
Quantity:	95,000 units

1. Suppose the campany believe the estimates are accurate only to within +/- 18 %. What value should the campany use for the 3 variables (Quantity, Price and Variable Cost) when it perform its best case senario analysis? What about the worst case senarios? Please fill in the table below.