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 0.81, the risk-free rate is 4%, and the market risk premium is 4%. a. If your firm's project is all-equity financed, estimate its cost of capital. After computing the project's cost of capital you decided to look for other comparables to reduce estimation error in your cost of capital estimate. You find a second firm, Thurbinar Design, which is also engaged in a similar line of business. Thurbinar has a stock price of $24 per share, with 15 million shares outstanding. It also has $106 million in outstanding debt, with a yield on the debt of 4.4%. Thurbinar's equity beta is 1.00. b. Assume Thurbinar's debt has a beta of zero. Estimate Thurbinar's unlevered beta. Use the unlevered beta and the CAPM to estimate a. If your firm's project is all-equity financed, estimate its cost of capital. The project's cost of capital is %. (Round to two decimal places.)