Suppose that a firm firm currently has no debt but is planning on issuing $4.0M in corporate bonds to finance a major expansion. The expected cost of debt is 5.5%. The firm currently has $9 in equity. If the firm goes ahead with the planned debt issuance, what do you expect the firms cost of equity to be? You can assume that the firm currenthly has a cost of capital of 10.5%, and a tax rate of 20%.

The answer should be given in decimal form with three decimals (e.g., if the answer is 6.1% then write 0.061)