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Calculate ldeko's unlevered cost of capital when Ideko's unlevered beta is 1.25, the risk-free rate of return is 5.32 percent and the expected market risk
Calculate ldeko's unlevered cost of capital when Ideko's unlevered beta is 1.25, the risk-free rate of return is 5.32 percent and the expected market risk premium is 5.96 percent. As a reference, the equity betas with confidence intervals along with capital structure and unlevered beta estimates for comparable firms are shown here The estimate of Ideko's unlevered cost of capital is | %. (Round to two decimal places.) Equity Betas with Confidence Intervals for Comparable Firms Monthly Returns 10-Day Returns Firm Oakley Luxottica Nike Beta 1.99 0.56 0.48 95% C.1 1.20 to 2.80 0.00 to 1.10 0.10 to 1.00 Beta 1.37 0.86 0.69 95% C.1. 0.90 to 1.90 0.50 to 1.20 0.40 to 1.00 Capital Structure and Unlevered Beta Estimates for Comparable Firms Firm Oakley Luxottica Nike E+D 1.00 0.83 1.05 E+D 0.00 0.17 PE 1.50 0.75 0.60 PD 0.00 0.00 0.00 Pu 1.50 0.62 0.63 0.05
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