You are opening a coffee shop in Winnipeg. To estimate its cost of capital, you identify Tim Hortons as the comparable firm. Tim Hortons has a market cap of $3 billion and outstanding debt of $2 billion. The yield on its debt is 3%, the probability of default is 1%, and the expected loss rate is 10%. The expected market return is 10%, and the risk- free rate is 1.2%. Corporate tax rate is 25%. You have the following data on factor beta and factor returns. Factor Beta Estimate Mkt 0.687 SMB -0.299 HML -0.156 PRIYR 0.123 Average Monthly Return (%) Factor Portfolio Mkt - rf 0.61 SMB 0.25 HML 0.38 PRIYR 0.70 a. What is the cost of debt for Tim Hortons? b. What is the cost of equity for Time Hortons c. What is the unlevered cost of capital for Tim Hortons? d. What is the WACC of Time Hortons? e. You plan to finance your coffee shop only with equity. What is the cost of capital on your coffee shop? f. You plan to finance your coffee shop with 60% equity and 40% debt. What is the cost of capital on your coffee shop? g. You plan to finance your coffee shop with 40% equity and 60% debt, and your project's cost of debt is 2%. What is your project's cost of equity