Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery oags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other nformation are provided below. Assets Liabilities and Equity The stock is currently selling for $18.75 per share, and its noncallable $1,000.00 par value, 10-year, 8.00\% bonds with semiannua payments are selling for $860.14. The beta is 0.96, the yield on a 6-month Treasury bill is 2.00%, and the yield on a 10-year Treasury bond is 4.00%. The required return on the stock market is 13.00%, but the market has had an average annual return of 6.00% during the past 5 years. The firm's tax rate is 25%. What is the best estimate of the after-tax cost of debt? a. 7.70% b. 8.84% c. 10.27% d. 4.42% e. 3.85%