Suppose it's January 2021 and you would like to estimate the unlevered cost of capital (r) for Cowbell Corp. The current share price of Cowbell is $18 and there are 10 million shares outstanding. You have estimated Cowbell's equity beta 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 addtion, the table below 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? Assets Cash & Short-Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Property, Plant & Equipment Less Accumulated Depreciation Net Property, Plant & Equipment Goodwill & Intangible Assets Other Long-Term Assets Total Assets Balance Sheet (in $-millions) 2020 Liabilities $10.00 Accounts Payable $30.00 Short-Term Debt $15.00 Current Maturities of Long-Term Debt $4.00 Other Current Liabilities $59.00 Total Current Liabilities $150.00 Long-Term Debt ($40.00) Capital Lease Obligations $110.00 Total Debt $18.00 Deferred Taxes $23.00 Other Long-Term Liabilities 2020 $10.00 $5.00 $15.00 $9.00 $39.00 $50.00 $0.00 $50.00 ($12.00) $22.00 Total Liabilities $99.00 Shareholders' Equity $111.00 $210.00 Total Liabilities and Shareholders' Equity $210.00