I got 1.08 for question (a) but have no idea how to go about solving (b) (c) or (d)

2. Consider the following data for US department stores in mid-2009, showing the equity beta, Debt-to-EnterpriseValue Q/V = Df[D+E] ), and debt rating. Company Helm Equity Beta Dillard's DDS 2.38 J. C. Penney Company JCP 1.60 Kohl's KSS 1.37 Mach M 2.16 Nordstrom JWN 1.94 Salts SKS 1.85 Sears Holdings SHLD 1.36 a) Estimate asset beta (BA) for Saks. DN 0.59I 0.1 1' 0.08 0.62 0.35 0.50 0.23 Debt Rating 3 BB BBB BB BBB CCC BB b) If you were considering opening a department store and needed to estimate cost of capital for your project, how would you do that? Assume: your project is going to be 100% equity nanced; asset betas for department stores in the above list (excluding Saks) are estimated to be 1.13, 1.36, 1.27, 0.93, 1.3, 1.09. Applicable risk 'ee rate is 4% and market expected return is 10% c) Suppose YTM of Saks's debt was 29%. Would this value be a realistic estimate of Saks's cost of debt (r4)? Explain briey (short answer; no computations needed). d) If your answer in c) is ' 0" provide your estimate of cost of debt (r1) for Saks in mid-2009 assuming that the average loss rate for unsecured debt is about 60%