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 fier. Thurbinar Design, which is also engaged in a similar line of business. Thurbinar has a stock price of $25 per share, with 14 million shares outstanding. It also has $110 million in outstanding debt, with a yold on the debt of 4.9%. Thurbinar's equity beta is 1.00, b. Assume Thurbina's dobt has a beta of zero. Estimate Thurbinar's unlovered bota. Use the unlovered bota and the CAPM to estimato Thurbinar's unlevered cost of capital c. Estimate Thurbinar's equity cost of capital using the CAPM Thon assume its debt cost of capital equals its yield and using these results, estimate Thurbinar's unlevered cost of capital d. Explain the difference between your estimate in part (b) and part (e) You decide to average your romits in port (b) and part (c), and ton average this result with your estimate from part (a) What is your estimate for the cost of capital of your firm's project? a. If your firm's project is all-equity financed, estimate its cost of capital The project's cost of capital is l%. (Round to two decimal places)