Your firm is considering building a casino, and you are trying to determine the cost of capital in the industry. You have collected the following information on firms in the casino industry. Company MGM Mirage Mandalay Resort Group Caesars Entertainment Beta 1.10 0.95 1.20 Stock Price $72.67 $70.43 $19.88 # of Shares 143 million 65 million 304 million Debt $5.6 billion $3.0 billion $4.6 billion The risk-free rate is 5%, and the historical market risk premium, (E[Rmk]-r), is 6%. 1) What is the equity cost of capital for an unlevered firm in the industry? 2) What is the equity cost of capital for a firm in the industry with a debt-to-equity ratio of 1?