Peer firms Observed Beta D/E Tax Rate

Firm A 1.22 .81 40%

Firm B 1.76 1.22 30%

Firm C .99 .25 40%

Firm D .93 .33 30%

Firm E .81 .00 30%

You know that the target D/E ratio for your firm is 0.40, and the tax rate is 30%.Further, the risk free rate is 3.50%, and the expected return on the market is 10.50%.What is the estimated cost of equity capital? [When aggregating the data, use the median of the peer firms].

***hw help(please include steps so i can understand how to do it)