A colleague of yours requested your opinion about an intended investment she wishes to make in an unlisted Company A$,$ which she identified. Her required return on an investment is $12\%.$ She managed to obtain the following information about Company A and a similar listed company.

Company A$$Equity Beta $($Geared$)$ before project investment$0\mathrm{.}95$Debt: Equity ratio before project investment$30$:$70$Debt: Equity ratio after project investment$25$:$75$

Additional information:

$$ Company A has no equity beta.

$$ The tax rate is $27\%.$

$$ The return on the market is $14\%$ and the risk$-$free rate is $10\mathrm{.}7\%.$

Required:$2\mathrm{.}1$ Calculate the asset $($ungeared$)$ beta coefficient for Company A$.(3)2\mathrm{.}2$ Use the information provided, together with the outcomes from $2\mathrm{.}1$ to calculate the Equity $($geared$)$ beta and required return for Company A $(5)2\mathrm{.}3$ Explain to your colleague the reasons why it is essential to determine an equity beta for Company A$.(14)$