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You have been asked to determine a WACC for DressHouse, a midsized regional women's clothing chain.DressHouse has a debt-to-equity ratio is lower than usual at40%. The tax rate is 30%. Your assistant has provided you with thefollowing information on comparable firms.FirmLevered BetaD/E RatioDressBarn1.871.3J. Jill1.651.1ChicWomen1.350.7So your next task is to determine the unlevered beta of each ofthese firms.Using an average of those unlevered betas estimate a leveredequity beta for DressHouse.Given T-Bills are currently yielding 0.9% and the return onmarket is 7.2%, calculate the required return DressHouse's stock,according to the CAPM.DressHouse, currently, has outstanding 10-year maturity bondswith a par value of $1,000 that pay a 6% annual coupon, that areselling for $1,015. Calculate DressHouse's required return ondebt.Based on your results above, calculate the weighted average costof capital for DressHouse.