Chartered Financial Analyst Level 2
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An analyst reviews the following information:
| Low Estimate | High Estimate | Valuation with Low Estimate | Valuation with High Estimate | |
|---|---|---|---|---|
| Cost of debt | 8.2% | 10.3% | $540 million | $240 million |
| Cost of equity | 10.0% | 12.5% | $370 million | $230 million |
| Manufacturing costs (% of revenue) | 20.3% | 24.8% | $410 million | $300 million |
Based on this information, the company's value is most sensitive to changes in the: