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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
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 0.89, the risk-free rate is 3.9%, and the market risk premium is 4.7%. If your firm's project is all equity financed, estimate its cost of capital. (Round to one decimal place.)
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