Answer part b only please

1) You are estimating the cost of equity capital for a firm and rely on the following comparable firms: Peer Firms Observed Beta FirmA 2.39 Firm B 2.71 Firm 1.77 Firm D 1.88 Firm E 1.56 D/E 0.83 1.05 0.25 0.33 Tax Rate 40% 30% 40% 30% 30% 0.00 a) [1 point] You know that the target D/E ratio for your firm is 0.80, and the tax rate is 30%. Further, the risk free rate is 4.00%, and the expected return on the market is 11.00%. What is the estimated cost of equity capital? [When aggregating the data, use the equally-weighted average of the peer firms). A) 18.43% B) 14.90% C) 21.00% b) (1 point] You know that the target D/E ratio for your firm is 0.80, and the tax rate is 30%. Further, the risk free rate is 4.00%, and the expected return on the market is 11.00%. What is the estimated cost of equity capital? [When aggregating the data, use the median of the peer firms). A) 17.16% B) 21.04% C) 14.90%