The market-risk-premium is estimated at 6% and the risk-free rate at 4%. UniChip is currently unlevered. The company will generate total cash flow (C) of 60 million next year at t=1. If the firm remains unlevered, cash flow will grow perpetually at a rate of 1%. UniChips unlevered equity beta has been estimated at 2. The CFO of UniChip is contemplating a levered recapitalization transaction in which he permanently moves the firm to a target debt-to-assets ratio of 80% (0.80). At this financial structure, the debt beta will be 0.50. UniChip faces a corporate income tax rate of 50%. Despite the tax benefits of debt, some colleagues are concerned that the increase in leverage will decrease the growth rate of cash flow to something less than the present 1%. At what rate of new cash flow growth is the recap still worth doing?