Assume the capital market is perfect and there are no corporate taxes.

Two firms, Firm A and Firm B, have identical businesses, which generates free cash flow of $800 or $1000 each year with equal probabilities. Both firms pay all earnings less interest on the debt if any as dividends to equity holders. Firm A is an all equity firm. Firm B has a debt of $5000 at an interest rate of 6%. The equity cost of capital of Firm B is 10%. Find the equity cost of capital of Firm A.