Company X currently is an all-equity firm with an expected return of 6.6%. It faces no corporate taxes and perfect capital markets. If the firm borrows to the point that its debt-to-equity ratio is 1.3, the required return on debt will be 5.4%. What will the required return on equity be in that case? Report an answer to two decimal places, like 8.03 for 8.03%. Question 5 5 pts Afirm's stock has beta 1.2 and P/E ratio 17.9. The risk-free rate is 2.5%, the market risk premium is 5%, and the corporate tax rate is 20%. What is likely the best estimate of the firm's equity cost of capital? Report an answer correct to at least one digit after the decimal, such as 12 3 for 12.3%. @