You run an unlevered firm in the business of making guitars. You estimate your beta of equity to be 0.75. The risk-free rate is 2% and the expected market return is 8%. a. Calculate the business's cost of capital. b. Imagine the firm is now thinking about taking on a little bit of debt and would be able to do so at 4%. What would be the impact of structuring the firm with 25% debt on the required rate of return on equity? c. Returning to the original problem (you are an unlevered firm), suppose you are thinking about shifting into the mining business. You have put together cash flows and have found another unlevered mining company has an equity beta of 0.65. You believe the mining business would represent 50% of sales. What is the appropriate discount rate to use for deciding whether to invest in the mining business