The file Exercise_2.xlsx contains the financial statements for companies A and B. Company A has an estimated cost of equity equal to 7.50%. This is justified by a levered beta of 0.8 and an expected return for the stock market of 9.00%. Estimate what the Weighted Average Cost of Capital for company B would be if the risk-free rate decreases by 0.5%. Enter your answer with four decimal points. For example if your cost of capital is 3.25% enter 0.0325

W N K Company A Company B Assets Cash & Short-Term Investments 7,744.0 538.2 Short-Term Receivables 1,927.1 130.2 Inventories 17.0 0 Other Current Assets 5.6 0.5 Total Current Assets 9,693.7 668.9 Net Property, Plant & Equipment 13,639.7 3,404.9 10 Total Investments and Advances 2,538.4 537.3 11 Long-Term Note Receivable 0.0 73.0 12 Intangible Assets 345.1 7,431.2 13 Deferred Tax Assets 5.9 0.0 14 Other Assets 15.6 10.2 15 Total Assets 26,238.4 12, 125.5 16 17 Liabilities & Shareholders' Equity 18 ST Debt & Curr. Portion LT Debt 0.0 0.0 19 Accounts Payable 169.9 221.0 20 Income Tax Payable 328.9 0.0 21 Other Current Liabilities 1,596.5 477.1 22 Total Current Liabilities 2,095.3 698.1 23 24 Long-Term Debt 3,000.0 5,614.4 25 Provision for Risks & Charges 0.0 2.1 26 Deferred Tax Liabilities 0.0 1,775.2 27 Other Liabilities 2.2 179.5 28 Total Liabilities 5,097.5 8,269.3 29 30 Common Equity 21, 140.9 3,862.3 31 Total Shareholders' Equity 21, 140.9 3,862.3 32 Accumulated Minority Interest 0.0 0.0 33 Total Equity 21, 140.9 3,862.3 34 Total Liabilities & Shareholders' Equity 26,238.4 12, 131.6 35 36 Marginal Tax Rate 25.0% 25.0% 37 Levered Beta 0.8 1.2 Cost of Debt (ra) 6.20% 6.30% 39 Cost of Equity (re) 7.50% 40 Expected market Return 9.00% 41