TargetCo has 3 close comparable companies with their financial information as follows. Tax rate is 40% for all. Comparable companies D/E ratio Levered beta Unlevered beta aaCo 49.1% 1.35 37.8% 1.22 ccCo 41.7% 1.29 Calculate the asset (unleveraged) beta and the optimal D/E ratio. Given a risk-free rate 3%, a market risk premium 6.62% and a size premium 2%, calculate the cost of equity