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Your firm is planning to invest in an automated packaging plant. Harburtin Industries is anall-equity firm that specializes in this business. SupposeHarburtin's equity beta is

Your firm is planning to invest in an automated packaging plant. Harburtin Industries is anall-equity firm that specializes in this business. SupposeHarburtin's equity beta is 0.88, therisk-free rate is 3.8%, and the market risk premium is 4.8%. If yourfirm's project isall-equity financed, estimate its cost of capital.

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