Assets Current assets Net plant, property, and equipment Total assets $38.000.000 $101.000.000 $139.000.000 Liabilities and Equity Accounts payable $10,000,000 Accruals $9.000.000 Current liabilities $19,000,000 Long-term debe (40.000 bonds, $1,000 par value) $10.000.000 Total liabilities $59.000.000 Common stock (10,000,000 shares) $30,000,000 Retained earnings $50.000.000 Total shareholders' equity $80.000.000 Total liabilities and shareholders' equity $139.000.000 The stock is currently selling for $15.25 per share, and its noncallable $1,000.00 par value, 20 year, 9.00% bonds with semiannual payments are selling for $930.41. The bota is 1.22, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20 year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25% Refer to Exhibit 10.1. What is the best estimate of the after-tax cost of debt? a. 7.35% b. 5.23% OC 648% d. 6.17% e. 5.59%