Q13, Your firm is planning to invest in a new electrostatic power generation system. Electrostat Inc. is a firm that specializes in this business. Electrostat has a stock price of $25 per share with 16 million shares outstanding. Electrostats equity beta is 1.18. It also has 220 million in debt outstanding with a debt beta of 0.08. The risk-free rate is 3%, and the market risk pre premium is 6%. 1. Determine the cost of capital for Electrostat. (20 pts.)