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finance please hurry up ... You are trying to estimate the cost of capital for la Coste, an upscale specialty retailer The firm is in

finance please hurry up ... image text in transcribed
You are trying to estimate the cost of capital for la Coste, an upscale specialty retailer The firm is in only one business, specialty retaling, comparable firms have an average published beta of 12. on average debt ratio of 30% and an average tax rate of 40%. The firm has provide you with the following information The regression beta is 065 with a standard error of 0.5 The firm's bonds are rated and the default spread for A rated bond is 0.025. The company plans to maintain is current de ratio of 20% The Treasury bond rite is 0.042 and the equity risk premium is 0.074 The tax rate for La Comis 40 What is the average unlevered beta for the comparatie firms? Estate La Coste's betstased upon the comparable firme Bottom up beta) Estimate La Coste's beta based upon the comparable firms (ie. Bottom up beta) What is La Coste's before tax cost of debt? What is La Coste's after tax cost of debt? Use beta calculated in part two to calculate La Coste's cost of equity? What is the WACC? You are trying to estimate the cost of capital for la Coste, an upscale specialty retailer The firm is in only one business, specialty retaling, comparable firms have an average published beta of 12. on average debt ratio of 30% and an average tax rate of 40%. The firm has provide you with the following information The regression beta is 065 with a standard error of 0.5 The firm's bonds are rated and the default spread for A rated bond is 0.025. The company plans to maintain is current de ratio of 20% The Treasury bond rite is 0.042 and the equity risk premium is 0.074 The tax rate for La Comis 40 What is the average unlevered beta for the comparatie firms? Estate La Coste's betstased upon the comparable firme Bottom up beta) Estimate La Coste's beta based upon the comparable firms (ie. Bottom up beta) What is La Coste's before tax cost of debt? What is La Coste's after tax cost of debt? Use beta calculated in part two to calculate La Coste's cost of equity? What is the WACC

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