K2 Enterprises is a mid-cap firm with a debt-to-equity ratio of 1. The return on the market is 10.0%, the risk-free rate is 4.0% and K2's WACC is 7.0%. Further assume that K2's debt is risk-free and there are no taxes (perfect capital markets).

.1 What is the return on K2's levered equity? ---------------- (write to one decimal place, without % sign, 12.1% should be entered as 12.1)

2. What is K2's levered beta? --------------- (write to one decimal place)

3. What is the required return on unlevered equity? --------------- (write to orte decimal place, without % sign, 12.1% should be entered as 12.1)

4. What is the unlevered beta? --------------------(write to one decimal place)

1. K2 Enterprises is a mid-cap firm with a debt-to-equity ratio of 1. The retum on the market is 10.0%, the risk-free rate is 4.0% and 2 WACC is 70%. Further assume that K2's debt is nisk free and there are no taves perfect capital markets). 1. What is the retum on K2's levered equity? Carte to ona decimal place without sig, 12.1% should be entered as 12,1) 2. What is K2's lovered beta? write to one decimal place) 3. What is the required return on unlevered equity? (write to one decimal place, without * sign, 12.1% should be entered as 12.1) 4. What is the unlevered beta? (write to one decimal place)