40. A company is estimating its optimal capital structure. Now the company has a capital structure that consists of 50% debt and 50% equity, based on market values (debt to equity D/S ratio is 1.0). The risk-free rate (r_RF) is 3.5% and the market risk premium (r_M r_RF) is 5%. Currently the companys cost of equity, which is based on the CAPM, is 13.5% and its tax rate is 30%. Find the firms current leveraged beta using the CAPM. (answer = 2.0 I believe, check if necessary)

41. based on information in Q.40, find the firms unleveraged beta using the Hamada Equation. (answer = 1.18 I believe, check if necessary)

42. Based on the information from Question 40 and 41, what would be the companys new leveraged beta if it were to change its capital structure to 60% debt and 40% equity (D/S=1.5) using the Hamada Equation? Based on this information what would be new cost of equity using CAPM?

(Need help please).