North Pole and South Pole are competitors in the same industry.

Both companies face a $22\%$ income tax rate.

Both companies are levered. $($North Pole and South Pole had the same equity Betas, $1\mathrm{.}22,$ when they were still unlevered.$)$ Their capital structures look like this:

North Pole South Pole

Debt $$3,070,000$$$3,980,000$

Equity $$3,980,000$$$3,070,000$

For both companies, the Betas for their debt is zero.

Additional information about the market:

The market portfolio's expected return is $12\mathrm{.}5\%.$ The T$-$bill rate is $4\mathrm{.}5\%.$

a$.$ What is the Beta of equity for North Pole and South Pole? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ In addition, calculate the required return on equity that would correctly reflect the level of systematic risk. $($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.,$North Pole,,$],[,$South Pole,,$],[$b$.,$North Pole,,$\%$