You have been asked to estimate the cost of capital for Simtel Enterprises, a firm with operations in different businesses. You are given the breakdown of the three businesses that Simtel is in below: Business Estimated Value Unlevered beta for comparable firms Telecomm Services $ 2.0 billion 1.00 Computer Software $ 1.0 billion 1.25 Real Estate Management $ 1.0 billion 0.60 Simtel has 100 million shares outstanding, trading at $ 20 a share; its remaining capital is in the form of corporate bonds with a BB rating, carrying a default spread of 4% over the risk-free rate. Simtel's marginal tax rate is 40%. The long-term treasury bond rate is 6% and the market risk premium is 4%. a) Estimate the cost of capital for Simtel