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If wacc is 1341 what is the after-tax cost of debt for the

Problem - JollyFolly, Inc. - The following data pertains to JollyFolly, Inc., a manufacturer of candy (dollar amounts in thousands).

Total Assets $722,314

Interest-Bearing Debt (Market value) $199,949

Common Equity: Book Value $244,322

Market Value $589,859

Marginal Income Tax Rate 35%

Market Equity Beta 1.8

Risk Free Rate 5.20%

Market Risk Premium 6.50%

If WACC is 13.41%, what is the after-tax cost of debt for the company? Round your answer using 4 decimal places (e.g., .0565).

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