You have run a regression of Google returns against returns on the S&P500 and the equation was as follows: ReturnsGoogle = 0.0001 + 0.75 (ReturnsS&P500) R2 0.55, the standard error for the beta estimate is 0.6 You also note that the average unlevered beta for comparable firms is 1.4, Google's debt-to-equity ratio 30% ,T-bond rate 0.075 and the equity risk premium is 0.085 and Google AA rate bond default spread is 0.015. (Tax rate = 40%) Please write your answers in decimals. What is the levered beta for Google? What is Google's after tax cost of debt? What is Google's cost of equity? What is the WACC? What is the firm specific risk?

You have run a regression of Google returns against returns on the S&P500 and the equation was as follows: Returns Google = 0.0001 +0.75 (Returns S&P500) R2 0.55, the standard error for the beta estimate is 0.6 You also note that the average unlevered beta for comparable firms is 1.4, Google's debt-to-equity ratio 30% ,T-bond rate 0.075 and the equity risk premium is 0.085 and Google AA rate bond default spread is 0.015. (Tax rate = 40%) Please write your answers in decimals. What is the levered beta for Google? What is Google's after tax cost of debt? What is Google's cost of equity? What is the WACC? What is the firm specific risk? =