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A firm has a capital structure of 100% equity. An analyst wants to estimate the current cost of capital for the firm. He has collected

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A firm has a capital structure of 100% equity. An analyst wants to estimate the current cost of capital for the firm. He has collected some financial data shown in the table below: FINANCIAL INSTRUMENT RETURN OR YIELD TO MATURITY 1.26% 90-day Treasury Bill S&P 500 Market Index 7.01% The beta for the firm is 1.41. The firm is considering a capital budgeting project that will create a cash flow next year of $511,860.00. The project cash flows will grow by 4.00% each year for a 11.00-year period, and the cost of the project is $3,279,733.00 today. What is an estimate for the current cost of capital

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