Based on the following information, calculate the after-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)
Bonds
Par Value = $1,000
# of bonds issued = 311,000
Price (% of Par) = 108%
Coupon rate = 6%
Matures in 10 years
Makes semi-annual interest payments
Common Stock
Shares outstanding = 25,000,000
Price per share = $30.00
Beta = 0.88
Dividend just paid = $1.25
Other Information
Expected return on the market = 8%
Risk-free rate = 1%
Tax rate = 30%