TTC Enterprises has 12,000 units of bonds outstanding that have a 6% coupon rate. The par value of each unit is $1,000. The bonds are selling at 98% of face value, pay interest semi-annually, and mature in 28 years. In addition, there are 1.40 million shares of common stock outstanding with a market price of $54 a share. The common shares were sold at $60 per share when first issued. The stock just paid a dividend of $1.80 per share and expects to increase those dividends by 4% annually. The firm's tax rate is 34%. What is the after-tax cost of debt financing?