2 This is This is a subjective question, hence you have to write your answer in the Text-Field given below. 76626 A company uses only debt and internal equity to finance its capital budget and uses CAPM to compute its cost of equity. Company estimates that its WACC is 14%. The capital structure is 75% debt and 25% internal equity. Before tax cost of debt is 12.5 % and tax rate is 30%. Risk free rate is rƒ = 6% and market risk premium (rm -rf) = 8%. What is the beta of the company? [10 Marks]