Question 6 -- /3 [Q6-13] You are trying to estimate the enterprise value of Firm X. Since this firm is private, you cannot directly estimate the firm's cost of equity using its stock data. Fortunately, there is a similar firm, Firm Y, which is in the same industry with comparable operating risk characteristics. Assume that the CAPM holds. The risk-free rate is 2% and the market risk premium is 5%. Firm Y has a debt-to-equity ratio of 3 and it plans to keep this ratio fixed. Firm Y's equity beta is 6.6 and debt beta is 0.2. What is Firm Y's unlevered equity beta? QuesLIUI IU What is Firm X's cost of equity? * 10% Question 11 If the corporate tax rate is 50%, what is Firm X's WACC? @ 10%