Suppose it's January 2021 and you would like to estimate the unlevered cost of capital (r1) for Cowbell Corp. The current share price of Cowbell is $18 and there are 10 million shares outstanding. You have estimated Cowbell's equity bota as 1.25, and its cost of debt ( r ) as 2.75\%. The risk-free rate is 1.9% and the market risk premium is 5%. In addion, the table bolow shows the current balance sheet of the firm. Assume that all cash and short-term investments are excess cash. Based on the information provided, what is the best estimate the unlevered cost of capital for Cowbell? Select one. 1.6.91% 2.5.60% 3. 8.15% 4.5.02\% 5.6.80%