Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all$-$equity firm that specializes in this business. Suppose Harburtin's equity beta is $0\mathrm{.}85,$ the risk$-$free rate is $4\mathrm{.}00\%,$ and the market risk premium is $5\mathrm{.}00\%.$ If your firm's project is all$-$equity financed, estimate its cost of capital.

Harburtin's cost of capital is $\%.($Round to two decimal places.$)$