Question: Table 2: Sensitivity Analysis - How much does cost of equity change? Down 10% Share Price as of 15, March, 2021 Up 10% (1) Market

Table 2: Sensitivity Analysis - "How much does cost of equity change?"

Down 10%

Share Price as of 15, March, 2021

Up 10%

(1) Market Value of Net Debt (approximated by book value of net debt)

6715100

6715100

6715100

(2) Market Value of Equity

14998320

16664800

18331280

(3) D/E ratio (rounded to 4 digits)

0.4477

0.4030

0.3663

(4) D/(D+E)

0.3093

0.2872

0.2681

(5) E/(D+E)

0.6907

0.7128

0.7319

(6) r_D

1.932%

1.932%

1.932%

(7) r_E

16.5077%

16.0569%

15.6881%

(8) Pre-tax WACC

12%

12%

12%

Make a comment on how sensitive your analysis is when the share price increases or decreases by 10% supported by table 2

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