Company X is a private firm in steel industry and in the process of being acquired by another company in the same industry. Since, Company X is a private company, Company Z is taken as a proxy firm closely comparable to Company X for initial valuation negotiation. Company Z fundamentals are as follows: Beta: 1.36

Debt equity: 0.5

Market price: $75

Tax rate: 35%

Risk free rate: 5.5%

Market risk premium: 6.5% If the target debt equity of Company X in future is 0.62, what is its levered beta and cost of equity? Also compare with the cost of equity of the comparable company Z. (Please refrain from using ChatGPT)