Based on the current D/V = 0.372 and E/V = 0.638, Portland Energy Resources firm's levered Beta is 1.25. However, the cost of debt and equity ratio and the WACC formula should ideally represent long-term capital ratios, expressed on a market-value basis.

Unlever and lever Beta to reflect the long-term D/E target of 0.73, D/V target of 42.2%, and t of 0.40.