Suppose a company's current beta is 1.3 and the D:E=10:90. The tax rate is 21%. Round your final answers to one decimal. 1. What is the unlevered beta? Unlevered beta 2. Assuming the optimal capital structure for the company is D:E=40:60. What would be the equity beta under the optimal capital structure? Levered beta at D:E=40:60 3. The risk-free rate is 1%, the market risk premium is 4%. Compute the following cost of equity for the firm. Cost of equity at D:E=10:90 % Cost of equity at D:E=40:60