Beta for a firm is 1.0 at 0% Debt and is estimated to remain at 1.0 until Debt is 20%. After this point, Beta begins to rise by 0.1 for each additional 5% of Debt up to 50% Debt. Then, beginning at 50% Debt, for each additional 5% in Debt, Beta increases by 0.5 up to 80% Debt. Then, beginning at 80% Debt, for each additional 5% in Debt, Beta increases by 4.0 up to 100% Debt. The Equity Risk Premium is 7%. The Risk-Free Rate is 4.5%. Calculate the cost of equity capital (de) using the CAPM given each scenario below: 1. Find de given that the firm uses 40% Debt (and 60% Equity)