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Your firm is planning to invest in a new power generation system. Galt Industries is an all equity firm that specializes in this business. Suppose

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Your firm is planning to invest in a new power generation system. Galt Industries is an all equity firm that specializes in this business. Suppose Galt's equity beta is 0.75, the risk - free rate is 3%, and the market risk premium is 6%. If your firm's project is all equity financed, then your estimate of your cost of capital is closest to: OA. 6.00% OB. 7.50% O C. 6.75% O D. 5.25%

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