Suppose Luther Industries is considering divesting one of its product lines. The product line is expected to generate free cash flows of $2 million per year, growing at a rate of 3% per year. Luther has an equity cost of capital of 10%, a debt cost of capital of 7%, a marginal tax rate of 35%, and a debt-value ratio of 2/3. This product line is of average risk and Luther plans to maintain a constant debt-equity ratio. Luther's Unlevered cost of capital is closest to: 8.5% 8% 9% 6.4%