Consider the following data for five metal producers in mid-2009 (all numbers are made-up for the purpose of the exercise):

Company	Market Capitalization ($mm)	Total Enterprise Value ($mm)	Equity Beta	Debt Rating
Shougang Group (China)	4500	8000	1.1	B
Southern Copper (USA)	3800	7200	1.3	AAA
US Steel (USA)	2400	3800	0.9	BBB
RusAl (Russian Aluminium)	1500	4400	1.75	BB

Suppose you were considering expanding your business into metal production, and need to estimate cost of capital of your project. You estimated that applicable risk free rate is 3% and market expected return is 8%.

1. Estimate asset beta for the metal industry.
2. Compute cost of capital of the project if it is going to be 100% equity financed.
3. Which betas have more dispersed values equity betas or asset betas?