Brake Plus has a stock price of $30 per share with 12 million shares outstanding. There is 120 million in debt with a yield on debt of 4.6%. The equity beta for Brake is 1.20. The risk-free rate is 2.5% and the market risk premium is 6%. Carry all work to two decimal points (so XX.XX%) Use the equity beta in the CAPM to get the cost of equity. Use the cost of equity and the yield on the debt to calculate the unlevered cost of capital. Assume Brakes debt has a beta of zero. Calculate the unlevered beta. Use unlevered beta in the CAPM to get the unlevered cost of capital. Why are the two answers different?