A group of investors is intent on purchasing a publicly traded company and wants to estimbte the highest price they can reosonably Justify paying. The target company's equity beta is 1.20 and its debt to-firm volue ratio, measured using market values, is 60 pereent The investors plan to improve the target's cash fows and sell it for 12 times free cash flow in year five. Projected free eash flows and selling price are as follows To finance the purchase, the investors nave negoturwu w whing butance. This will be. the phercent interest to be repoid in five equal payments at the end of each year. plus interest on the declining bafance. This will be the only ingerest-bearing debt outstanding atton the acquisition. a. Estimate the target firm's asset beta. Note: Round your answer to 2 decimal places. b. Estimate the target's unievered, of allequity, cost of capial (KA) Note: Round your answer to 1 decimal place