Assume the M\&M assumptions with taxes hold (no default, etc.). Firm U has a debt-equity ratio of zero and produces free cash flows equal to $5,000 per year forever. The return on firm U 's assets equals 10%, the cost of debt is equal to 5%, and the tax rate equals 25%. An otherwise identical firm P has a debt-equity ratio of D/E=10. What is firm P 's cost of capital? 4.13% 5% 7.73% 10% 475%