You are trying to estimate the cost of equity for a privately owned cruise ship company called the Titanic Cruise Lines. You know that the company's cost of debt is 3% and its debt-to-enterprise value ratio is 20%. You have collected the following information on publicly traded cruise lines that are comparable. You also know that the risk-free rate is 1.9% and the market risk premium in 5%. What is the best estimate for the cost of equity of Titanic Cruise Lines ? Select one. (hint: Use the average unlevered cost of capital of the other cruise ship companies to calculate the cost of equity for Titanic Cruise Lines ) Market Value of Debt Market Capitalization Cost of Debt (D) Company Name Equity Beta () (in $ billions) (net of excess cash) (in $ billions) (in %) 16.3 8.3 Royal Caribbean Norwegian Carnival Lindblad 2.7 2.72 2.23 2.46 22.25 9.9 26.6 0.78 4.0% 4.5% 3.9% 3.5% 18.8 0.30 OI. 14.54% O II. 12.24% O III. 10.39% O IV. 15.81%