2. Kostas is private. It's publicly-owned industry peers have the following characteristics: Company Debt/Equity Marginal Tax Rate Beta DEF 1.5 .35 1.5 GHI 1.2 .40 1.4 JKL 2.0 .35 1.8 Kosta's Debt/Equity Ratio is 2.23 and their marginal tax rate is .35. What beta should Kosta use when computing the cost of common stock for WACC? 3. Given the information you learned in 1 and 2 and assuming a Market Risk Premium of 5%, a debt/equity ratio of [4000/(4186+4147)] = 2.08, and a price of common stock of $4.00, compute WACC for Kosta's