8. 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 0.85​, the​ risk-free rate is 3.7%​, and the market risk premium is 4.6%. If your​ firm's project is​ all-equity financed, estimate its cost of capital.  The cost of capital is _____%. ​(Round to one decimal​ place.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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8. 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 0.85​, the​ risk-free rate is 3.7%​, and the market risk premium is 4.6%. If your​ firm's project is​ all-equity financed, estimate its cost of capital. 

The cost of capital is _____%. ​(Round to one decimal​ place.)

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