The beta of the company can be found thanks to the already given value of the debt and equity betas: A - = D * (D/A) + E * (E/A). The D equals to the risk associated with the debt of the company, which is found looking at the A rating debt betas of Standard & Poor, which is 0.05. The E is instead the risk associated with the equity of the company, which is given in the form of the 2-Year Equity beta of 1.09. The BA therefore is 0.05*(16,672,000,000/32,805,000,000) + 1.12(16,133,000,000/32,805,000,000) = 0.5612. = It is now possible to calculate the Re= 0.0192 + 0.5615 * 0.0550 = 0.0742