NewBusiness Inc has a equity beta of $1\mathrm{.}25,$ and a tax rate of $25\%$ and has $25\%$ debt in its capital structure $($while the rest is equity$).$ The going interest rate on US Treasury bond is $4\mathrm{.}25\%$ and NewBusiness has traditionally used a market risk premium of $3\mathrm{.}5\%.$ Recent survey of market participants concludes that the market risk premium is about $7\%$ right now.

$\backslash$table$[[$Levered equity beta,$1\mathrm{.}25,],[$Treasure bond yield,$4\mathrm{.}25\%,],[$Market risk premium,$3\mathrm{.}50\%,7\mathrm{.}00\%$