*A firm has an expected rate of return of 5.6%. Its debt trades at the risk-free rate of 3.1%. The expected rate of return on the firm's equity is 6.8%.

The firm is going to restructure such that it's debt-to-value ratio is one half of the current ratio. After the restructuring, what will be the new expected rate of return on the firm's equity? Give your answer in percentage to the nearest 0.1 percent