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 $0\mathrm{.}94,$ the risk$-$free rate is

$3\%,$ and the market risk premium is $6\%.$ If your firm's project is all$-$equity financed, estimate its cost of capital.