Firm XYZ has two lines of business, organized as two divisions, A and B. Division A generates a risk-free cash flow. It will produce $2 million in free cash flow next year and it will grow at 2% each year thereafter forever. The second line of business, run by Division B, is risky. It expects to generate a cash flow of $2 million next year and will grow at a rate of 4%. Currently, the total market value of XYZ is $87 million. The risk-free rate is 5%. What is the cost of capital for the second line of business?