You computed 30 regression betas for a small industry. The average beta is 1.7. The average debt to equity ratio for these firms is 0.4. The tax rate is 0.24. What is the unlevered beta for the industry? You are calculating the cost of equity for Armstrong Flooring. The unlevered beta for the construction materials industry is 1.1. The debt to equity ratio for a firm is 0.5, tax rate is 0.24, the ERP is 5 and and risk free rate is 0.68.