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:

A) 5.25%.

B) 6.00%.

C) 6.75%.

D) 7.50%.

Use the following information to answer the question(s) below. "Eenie" "Meenie" "Miner" "Moe" Beta 0.45 0.75 1.05 1.20 Volatility 20% 18% 35% 25% Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%. 25) The equity cost of capital for "Miner" is closest to: A) 6.30%. B) 7.50%. C 9.30%. D) 9.75%