, Question: You need a cost of equity estimate for your private firm, and you decide to estimate a "bottom up" beta. You use 10-year Treasury bonds to obtain an estimate of the risk-free rate (1.23%) and use an estimate of 6% for the equity risk pre You identified three appropriate publicly-traded comparable companies: Ilyas , Nav, and Toro Inc. You estimate each comp's beta from historical monthly returns and obtain the market values of their debt and equity as follows: Beta Debt Equity Ilyas 1.2 $450,000.00 $3,300,000.00 Nav 1.1 $80,000.00 $4,000,000.00 Toro Inc. 1.4 $0.00 $2,100,000.00 Your private firm does not have any debt. All have the same marginal tax rate (24%). You intend to take a simple average of the unlevered betas of the comps to estimate your firm's unlevered beta. What is the estimate of your firm's cost of equity