Please use the following information to answer this question:

Walmart can borrow at an after-tax interest rate of 2.87%.

Walmarts beta is .48.

The required return on the risk-free 10-year bond is 2.5%.

The market or equity risk premium which is the excess that stocks must pay over the risk-free rate or (Re Rf) is 5%.

Walmart is financed with 20% debt and 80% with equity.

Using this information, please calculate Walmarts cost of capital to a percentage with two decimals (for example 1.87%).