Debt $35,000$ bonds with a $5\mathrm{.}0\%$ coupon rate, payable annually, $15$ years to maturity, selling at $$1,050$ per bond.

Common

Stock

Preferred

Stock

$504,000$ shares of common stock outstanding. The stock sells for a price of $$77$ per share and has a beta of $0\mathrm{.}63.$

$192,000$ preferred shares outstanding, currently trading at $$72\mathrm{.}90$ per share; with an annual dividend payment of $$9\mathrm{.}65$

The market risk premium is $17\%$ and the risk free rate is $6\%$ risk free rate is $6\%$

Market

Tax Rate

$22\%$

What is the after tax cost of debt $(R_d)?($Answer as a percentage and round to $2$ decimals$)$

a$.-0\mathrm{.}25\%$

b$.3\mathrm{.}53\%$

c$.0\mathrm{.}54\%$

d$.6\mathrm{.}72\%$

e$.4\mathrm{.}54\%$