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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 0.82, therisk-free rate is 3.8%, and the market risk premium is 5.3%. If yourfirm's project isall-equity financed, estimate its cost of capital.

Harburtin's cost of capital is BLANK % (Round to two decimalplaces.)

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