Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, tyrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are orovided below. Assets Liabilities and Equity 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 beta 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 irm's tax rate is 25%. What is the best estimate of the after-tax cost of debt? a. 7.35% b. 3.80% c. 3.68% d. 9.80% e. 7.59%