A semiannual, 8 percent bond matures in 14 years and has a face value of $1,000. The market quote on this bond is 1,017. What is the aftertax cost of debt if the tax rate is 32 percent?

7.11 percent

7.69 percent

5.08 percent

5.30 percent

Meiston Press has a debt-equity ratio of 1.10. The pre-tax cost of debt is 8.65 percent and the cost of equity is 13.4 percent. What is the firm