You want to calculate the cost of equity for Lester, a company in which you plan to invest. In order to do so. You need to estimate the company levered beta using the bottom up approach. Table below contains information on the levered beta and capital structure. D/E ratio of companies it deems to be appropriate to Lester industry.

COMPANY		LEVERED BETA	D/E RATIO
HARFORD		1.2	0.25
CLYDESDALE		1.3	0.45
FOXY		1.5	0.35
LEMMY		0.9	0.25
SOUTHERN		1.4	0.30

Assume a tax rate of 30% .

4.1.a calculate the levered beta of the industry

4.1.b calculate the unlevered beta of the industry

4.1.c calculate the levered beta for lester if the company D/E ratio is 0.6