Estimate PRLs beta based upon the comparable firms (i.e. Bottom up beta).

Estimate the lower bound for the regression beta at a 95% confidence interval.

Estimate the upper bound for the regression beta at a 95% confidence interval.

Estimate the cost of equity for the firm.

Estimate the after tax cost of debt for the firm.

Estimate the cost of capital (WACC) for the firm.

ol You are trying to estimate the cost of capital for Leoppardo Inc, The firm is in only one business, fashion; comparable firms have an average published beta of 1.4, an average debt ratio of 25% and an average tax rate of 35%. The firm has provided you with the following information: The regression beta is 0.9 with a standard error of 0.4. The firm's bonds are rated A, and the default spread for A rated bonds is 1.3%. The company plans to maintain its current debt ratio of 25%. The Treasury bond rate is 3.5% and the market risk premium is 6.5%, The tax rate for leoppardo is 40%