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BearKat Enterprises plans to issue bonds with the following characteristics: 10 years to maturity 7.5% annual coupon rate $1000 par value Currently prices at par

BearKat Enterprises plans to issue bonds with the following characteristics:

10 years to maturity
7.5% annual coupon rate
$1000 par value
Currently prices at par ($1,000)

Assume that BearKat Enterprises has a corporate tax rate of 40%

What is BearKat Enterprises after-tax cost of capital from debt (r_D x (1 - T))?

Enter your answer as a decimal with a leading zero and 4 decimal places of precision.

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