Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equity firm that specializes in this business Suppose Harturtin's equity beta is 0.89, 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 estimato. You find a second firm, Thurbinar Design, which is also engaged in a similar line of business. Thurbinar has a stock price of $21 per share with 16 million shares outstanding. It also has $117 million in outstanding debt, with a yield on the debt of 4 8%. Thurbinar's equity beta is 100 b. Assume Thurbinar's debt has a bota of zoro. Estimate Thurbinar's unlevered bota. Use the unlovered beta and the CAPM to estimato Thurbinar's unlevered cost of capital c. Estimato Thurbinar's equity cost of capital using the CAPM. Thon assume its debt cost of capital equats its yold and using these results, estimate Thurbinars unlevered cost of capital d. Explain the difference between your estimate in part (b) and part (c) e. You decide to average your results in part (b) and part (c), and then 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 9.92%. (Round to two decimal places.)