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You are trying to estimate the cost of capital for Leoppardo Inc. The firm is in only one business, fashion; comparable firms have an average published beta of $1,$ an average debt$-$to$-$equity ratio of $25\%,$ and an average tax rate of $35\%.$ The firm has provided you with the following information:

The firm's bonds are rated A$,$ and the default spread for A$-$rated bonds is $1\mathrm{.}25\%.$ The company plans to maintain its current debt$-$to$-$equity ratio of $20\%.$

The Treasury bond rate is $0\mathrm{.}02$ and the market risk premium is $0\mathrm{.}055.$

The tax rate for Leoppardo is $40\%.$

Estimate Leoppardo's beta based on the comparable firms $($i$.$e$.$ Bottom$-$up beta$).$

Estimate the cost of equity for the firm.

Estimate the after tax cost of debt for the firm.

Estimate the cost of capital $($WACC$)$ for the firm.