Unlevered beta estimates for comparable firms

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Reference no: EM131546308

Calculate? Ideko's unlevered cost of capital when? Ideko's unlevered beta is 1.24?, the? risk-free rate of return is 4.78 percent and the expected market risk premium is 6.12 percent. As a? reference, the equity betas with confidence intervals along with capital structure and unlevered beta estimates for comparable firms are shown? here,

Equity Betas Confidence Intervals for Comparable Firms

Monthly Returns 10-Day Returns

Firm Beta 95% C.I. Beta 95% C.I.

Oakley 1.99 1.20 to 2.80 1.37 0.90 to 1.90

Luxottica 0.56 0.00 to 1.10 0.86 0.50 to 1.20

Nike 0.48 -0.10 to 1.00 0.69 0.40 to 1.00

Capital Structure Unlevered Beta Estimates for Comparable Firms

E D

E+D E+D BE BD BU

Firm

Oakley 1.00 0.00 1.50 0.00 1.50

Luxottica 0.83 0.17 0.75 0.00 0.62

Nike 1.05 -0.05 0.60 0.00 0.63

The estimate of? Ideko's unlevered cost of capital is ______%. (Round to two decimal places)

Reference no: EM131546308

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