TryTips Inc., a food processing company, has come to you for some help in estimating a beta for their equity. The firm has been publicly traded for two years and the regression beta is 0.45 . The firm is in two businesses, and you have collected the following information on them: TryTips has 146 million shares outstanding, trading at $9 a share, $164 million in debt. The riskfree rate is 0.04 , the equity risk premium is 0.05 and the firm has a rating of BBB (with a default spread of 0.64 ). The marginal tax rate for all firms is 0.4. Estimate the cost of equity for TryTips