Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equity firm that specializes in this business Suppose Hartutin's equity beta is 0.82, the risk-free rate is 5%, and the market risk premium is 6% 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 estiration 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 $25 per share with 16 million shares outstanding. It also on $114 million in outstanding debt, with a yield on the debt of 4.1%. Thurbinar's oquity bota is 100, b. Assume Thurbinars debt has a bota of zoro. Estimate Thurbinar's unlevered beta. Use the unlevered bota and the CAPM to estimato Thurbinar's untevered cont of capital c. Estimate Thurbinar's equity cost of capital using the CAPM. Then assure its debt cost of capital oquals its yield and using these results, estimate Thutinas unlovered cost of capital d. Explain the difference between your estimate in part (b) and part (e). e. You decide to average your results in part(b) and part (e), and thon average this result with your stimato from part (a). What is your estirato 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 %. (Round to two decimal places.)