Q14:

Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equity firm that specializes in this business. Suppose Harburtin's equity beta is 0.81, the risk-free rate is

3.7%, and the market risk premium is 4.6%. If your firm's project is all-equity financed, estimate its cost of capital.

Harburtin's cost of capital is

enter your response here __________

%. (Round to two decimal places.)