Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equity firm that specializes in this business Suppone Harburtin's equly beta is 0.82 the risk-free rate is 4%, and the market risk premium is 5% 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 $20 per share, with 15 million shares outstanding It also has 5113 million in outstanding debt, with a yield on the debt of 47% Thurbinar's equity beta is 100 b. Assume Thurbinar's debt has a beta of zero. Estimate Thurbinar's unlevered bota. Use the unlevered bata and the CAPM to estimate Thurbinar's unlevered cost of capital c. Entimate Thurbinar's equity cost of capital using the CAPM. Then assume its debt cost of capital equals its yield and using these results, estimate Thurbinar's d. Explain the difference between your estimate in part (b) and part(e) 6. You decide to uverage your results in part (b) and part (e), and then average this result with your antimate from part (a) What is your estimate for the cost of Thurbinar's unlevered cost of capital is 7.65% (Round to two decimal places) c. Estimate Thurbinare equity cost of capital using the CAPM Then assume its debt cont of capital equal is yield and using these results, estimate Thurbinar's unlevered cout of capital Thurbinar's equity cost of capital is % (Round to two decimal place)