Google was first traded on August 19, 2004. If you were a financial manager at Twitter, Inc and wanted to estimate the beta before Twitter went public, you could have looked to the leading competitor Google that had been publicly traded for enough years to have measurable market beta. Suppose Google has a beta of 2.0 a debt of $10 billon, and equity of $50 billion. Google has a tax rate of 30 percent and pays interest of 10 percent on its debt. Suppose that Twitter has a debt of $1 billion and Twitters equity is estimated to be $10 billion. Twitter pays 1 32 percent tax rate. The expected return for the market portfolio is 12 percent and the risk-free rate is 6 percent. Compute the cost of equity for Twitter.