You have the following information about Second Regional Bank: Historical average cost of funds: 2.75% Total interest paid on liability side: $37 million Operating costs: $20 million Earning assets: $900 million Shareholders' required ROE: 20% Tax rate: 30% Shareholder equity: $90 million Compute the historical average cost. Write your answer expressed as a %, and round to two decimals. For instance, if you think the historical average cost is 0.0856237, then you write 8.56 below.