Monthly Returns 10-Day Returns Firm Beta 95% C.I. Beta 95% C.I. Oakley 1.99 1.20 to 2.80 1.37 0.90 to 1.90 Luxottica 0.56 0.00 to 1.10 0.86 0.50 to 1.20 Nike 0.48 -0.10 to 1.00 0.69 0.40 to 1.00

Firm @DIV{@I{E};@I{E}+@I{D}} @DIV{@I{D};@I{E}+@I{D}} @i{@Sub{E}} @i{@Sub{D}} @i{@Sub{U}} Oakley 1.00 0.00 1.50 0.00 1.50 Luxottica 0.83 0.17 0.75 0.00 0.62 Nike 1.05 -0.05 0.60 0.00 0.63

Calculate Ideko's unlevered cost of capital when Ideko's unlevered beta is 1.13 , the risk-free rate of return is 4.19 percent and the expected market risk premium is 4.74 percent. As a reference, the equity betas with confidence intervals along with capital structure and unlevered beta estimates for comparable firms are shown here, The estimate of Ideko's unlevered cost of capital is \%. (Round to two decimal places.)