NEED ASAP

7. CalculateIdeko's unlevered cost of capital whenIdeko's unlevered beta is 1.10, therisk-free rate of return is 4.00 percent and the expected market risk premium is 5.00 percent. As areference, the equity betas with confidence intervals along with capital structure and unlevered beta estimates for comparable firms are shownhere,

see attachment

Equity Betas with Confidence Intervals for Comparable Firms

Monthly Returns______________________10 Day Returns____

Firm___________________Beta___________95% C.I._________BETA_______95% C.I.

Oakley1.991.20 to 2.801.37 0.90 to 1.90

Luxottica0.560.00 to 1.100.860.50 to 1.20

Nike0.48-0.10 to 1.000.690.40 to 1.00

Capital Structure and Unlevered Beta Estimates for Comparable Firms

___ED _____

FirmE + DE+DbEbDbU

Oakley1.000.001.500.001.50

Luxottica0.830.170.750.000.62

Nike1.05-0.050.600.000.63

The estimate ofIdeko's unlevered cost of capital is ______%. (Round to two decimalplaces.)