Dons Manfucaturing has 9,067,400 shares of common stock outstanding. The current share price is 61.69, and the book value per share is 8.40. dons manufacturing has 2 bond issues outstanding, the first bond issue has a face value of 71,657,394, has a 0.05 coupon, matures in 10 years, and sells for 83% of par. The second issue has a face value of 54,714,777, has a 0.06 coupon, matures in 20 years, and sells for 92% of par.

The most recent dividend was a1.86 and the dividend growth rate is .06 assume that the overal cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semi-annual payment, the tax rate 0.27.

what is dons manufacturing after-tax cost of debt? Answer 4 decmials.