Sunshine Apparel Inc. (SAI) has two divisions, a women's business apparel division and a women's leisure apparel division. SAI operates as an all-equity firm: thus, it has no debt in its capital structure. The risk-free rate is 2.5%, the market risk premium is 5%, and the beta on its stock is 0.75. Using the CAPM, the firm's cost of equity is calculated as 6.25%. The firm's tax rate is 40%. Since the firm's capital structure consists entirely of equity, its WACC is equal to its cost of equity, 6.25%. SAI has two main competitors in the women's leisure apparel business. Company A and Company B. SAI's CFO has collected the following information regarding its competitors: SAI's CFO is interested in calculating a WACC for projects in its women's business apparel division. 50% of SAI's revenue, profit, and assets come from the women's business apparel division, while the other 50% comes from the women's leisure apparel division. The company assumes that projects in both divisions are financed with 100% equity. The company also assumes that the business risk of its leisure projects is similar to that of its competitors in the women's leisure apparel business. What would you estimate to be the WACC (or cost of equity since projects are financed with 100% equity) for a typical women's business apparel project for SAI