Prestige Motors Inc. is a non-publicly traded car manufacturer. You have been tasked to estimate its cost of equity. Fortunately, you have data on Elegant Automobiles Corp., a publicly traded company in the same industry. The Risk-free rate is 3% and the Market return 8%. Elegant Automobiles Corp.'s beta is 1.2 and it has no debt. Corporate tax rate for both companies is 30%. Prestige Motors has 10 million dollars in equity and 1 million dollars in debt. Prestigue Bonds yield 7% per year.

What is the cost of capital of Elegant Automobiles Corp.'s.

What is the best estimate of beta for Prestige Motors Inc,

What is the cost of equity for Prestige Motors Inc.

What is the cost of capital for Prestige Motors Inc.