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12-18. Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an allequity firm that specializes in this business. Suppose Harburtins
12-18. Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an allequity firm that specializes in this business. Suppose Harburtins equity beta is 0.85, the risk-free rate is 4%, and the market risk premium is 5%. If your firms project is all equity financed, estimate its cost of capital.
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