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Your firm is planning to invest in an automated packaging plant

Finance

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 0.93, the risk-free rate is 3%, and the market risk premium is 5.9%. If your firm's project is all-equity financed, its cost of capital is ______%

8.Your firm is planning to invest in a new electrostatic power generation system. Electrostat Inc is a firm that specializes in this business. Electrostat has a stock price of? $25 per share with 16 million shares outstanding. ? Electrostat's equity beta is 1.3. It also has? 256 million in debt outstanding with a debt beta of 0.07. Your estimate of the asset beta for electrostatic power generators is ______.

 

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