1 XYZ Inc., a diversified conglomerate, is deciding whether to buy a copper mine. XYZ already owns some gold mines and has recently invested in the biotech industry. XYZ's cost of capital is currently 10%. The following is a list of other companies for which market data are available. Firm Industry #shares Price/share Debt (book value Beta equity (in millions) in millions) A Gold/Biotech 3 10 15 B Copper 5 1 1.02 Copper 2 20 0.8 D Copper 1.5 3 3 1.37 As a simplifying assumption you can set all debt betas equal to zero. What opportunity cost of capital should XYZ use for evaluating whether to buy the copper mine? Use a risk free rate of 7% and a market risk prernium (tarof 8% 1 0