2. You are asked by the CFO of Bayern Chemicals, a privately owned German manufacturer, to estimate the firm's cost of capital. You have access to the following information: - The nominal risk-free rate is represented by the yield on the long-term 10-year German bund, which is 4.5 percent. - The average historical equity risk premium in Germany is assumed at 5.7 percent. - Bayern Chemicals' corporate tax rate is 38%. - Bayern Chemicals" debt-to-equity ratio is 0.7. - Bayern Chemicals' cost of debt is 6.75 percent. You have also collected the following information on comparable firms for Bayern Chemicals. Based on the information given, calculate Bayern Chemicals' cost of capital