WACC and Opomal Copital Structure F. Plerce Products Inc is considering changing its capical structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax sheld. Its investrient banker has indicated that the pre tax cost of debt under vanous possible captal structures would be as follows: F. Perce uses the CAPM to estimate its cost of common equity, fs and at the time of the analaysis the risk-free rate is 7%, the market risk premaim is 4%, and ther company tax rote is 35%. F. Pierce estimates that its beta now (which is "unlevered" because it currently has no debt) is 1.05 . Bosed on this information, what is the farm's optimal decimal places