Based on Exhibits A below, the current after-tax cost of debt for MBG is closest to (use decimal form and take it out to 4 decimal places):

Exhibit A: Yield to maturity on debt: 9% Market value of debt: $108 million Number of shares of common stock: 31 million Market price per share of common stock: $10 Cost of capital if all equity-financed: 10.3% Marginal tax rate: 37%