AX (This information is used for problems 20 - 25) The Envelope Company has the following liabilities and equity Liabilities and Stockholders' Equity Accounts Payable and Accruals Short Term Notes Payable Long Term Bank Financing Total Liabilities Stockholders' Equity Total Liabilities and Equity $ 550 $1,100 $2,000 $3,650 $3,250 $6,900 The risk free rate of return is 3.0%. The market rate of return is 12.5%. The Beta is 1.3. The P/E ratio is 7.1. The stock price is $14.80. The last annual dividend was $0.60. This dividend is expected to grow 5.0% per year in the future. There are 170 shares of common stock outstanding. Envelope's tax rate is 40%. The interest rate is 2.75% on short term notes payable and 5.3% on long term bank financing. What is the after tax cost of short term notes payable