ld be the break-even point if fixed costs were reduced ilug pbv, Whar woul e) Calculate the break-even point if all the above changes (b, c, and d) were to take place to $21,280? simultaneously? Question 3 (15 marks) The capital structure of Orange Tradings (given in terms of both book value and market value) is as follows: Book Value S15,000,000 2,000,000 9,000,000 S26,000,000 After-tax Cost 7.0% 9.0% 14.0% Market Value S13,000,000 7 Bonds Preferred stock Common equity 2,500,000 18,500,000 $34,000,000 a) What is the weighted b) Orange Tradings is considering a project that is costing N$320,000 where they would make a return e) average cost of capital using both Book Value and Market Value calculations for Orange Tradings? (10) of N$51,000. Would you advice the company to accept this project or not? Support your answer What is theoretically the best weighting method that Orange Trading should use? Why