3. Rick Malcolm is an advisor to a board member who works at a private equity firm. He h sophisticated investors use a quick estimate of the cost of equity. He says that the cost of company's debt rate. The estimate is that 3% to 5% should be added to the company's lor Mccormick & Company estimates its current borrowing cost at 4%. Make your own estim Mccormick & Company. Then calculate the Cost of equity, r, using this own debt plus a 3