The CFO of Sterling Chemical is interested in evaluating the cost of equity capital for his firm. However, Sterling uses very little debt in its capital structure (the firm's debt-to-equity capitalization ratio is only 20%), while larger chemical firms use substantially higher amount of debt. The following table shows the levered equity betas, debt-to-equity ratios, and debt betas for three of the largest chemical firms:

Company Levered Debt/Equity Assumed Name Equity Capitalization | Debt Betas Betas Eastman 1.79 30.77% 0.30 Chemical Co. (EMN) Celanese Corp. 1.98 23.55% 0.30 (CE) Dow Chemical 1.71 21.60% 0.30 Company (DOW)