A company's stock is not publicly traded, so you want to estimate its beta based on the betas of two comparable companies. Company A's beta is 1.2 and its debt ratio is 20%. Company B's beta is 1.6 and its debt ratio is 50%. The tax rate is 36% for all three companies. What is the company's equity beta based on the comparable companies, if the company's debt ratio is 30% ? The asset beta based on company A is 1.2/[1+(10.36)(0.2/0.8))]= 1.03 The asset beta based on company B is 1.6/[1+(10.36)(0.5/0.5))]= 0.98 The average asset beta is 1.005 The company's beta is 1.005[1+(10.36)(0.3/0.7))]=