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Hi - i need help with the question attached. please let me know if you need anything else. Question You need to estimate the equity

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Hi - i need help with the question attached. please let me know if you need anything else.

image text in transcribed Question You need to estimate the equity beta for Golden Clothiers, Inc. Golden's debt-to-equity ratio is 85%, and its debt beta is 0.25. The following table shows the betas, debt betas and debt-to-equity ratios for three comparable clothing retailers (all taken from finance.yahoo.com). Assume the tax rate is 30% for all four firms. Please show your work and clearly label your answers. Company Beta D/E Ratio Debt Beta TJ Maxx 1.68 0.25 0.3 New York & Co 2.14 0.16 0.3 Express, Inc 1.23 0.28 0.3 a. Assuming debt is risk-free, use the information given above to estimate the unlevered equity betas of each of these companies. b. Assuming debt is risk-free, what is your estimate of Golden Clothiers levered equity beta? c. The current risk-free rate is 1.8% and the current return on the market is 9.3%. If Golden's before-tax cost of debt is 5.42% and it has no preferred stock in its capital structure, what is Golden's weighted average cost of capital

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