You are tasked with finding the cost of equity of company ' XYZ '. The current riskfree rate is 2%, and the equity market return 8%. The company is privately held, so you use its competitor's asset Beta of 1 to calculate XYZ 's Beta. The competitor has a D/E ratio of 20%,XYZ has a D/E ratio of 40%. The tax rate is 25% Please answer the question: What is XYZ 's cost of equity? Please answer by completing all answer boxes in the solutions template, and by giving brief verbal or numerical explanations of your calculations. Question 3: Cost of Capital (Pt. 1)