You need to estimate the equity beta for Golden Chemical, Inc. Golden's debt-to-asset ratio is 18%, and its debt beta is 0.25. The following table shows the betas, debt betas and debt-to-equity ratios for three comparable chemical firms (all taken from finance.yahoo.com). Assume the tax rate is 40% for all four firms. Please show your work and clearly label your answers.

Company	Beta	D/E Ratio	Debt Beta
Eastman Chemical	2.58	1.05	0.3
Celanese Corp	1.73	0.62	0.3
Dow Chemical	1.99	0.87	0.3

1. Assuming debt is risk-free, use the information given above to estimate the unlevered equity betas of each of these companies.
2. Assuming debt is risk-free, what is your estimate of Golden Chemicals levered equity beta?
3. The current risk-free rate is 1.4% and the current market risk premium is 7.03%. If Golden's before-tax cost of debt is 6.8% and it has no preferred stock in its capital structure, what is Golden's weighted average cost of capital?