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Filer Manufacturing has 5 , 3 9 5 , 7 0 1 shares of common stock outstanding. The current share price is $ 7 2

Filer Manufacturing has 5,395,701 shares of common stock
outstanding. The current share price is $72.57, and the book value
per share is $4.74. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $46,853,586,
has a 0.05 coupon, matures in 10 years and sells for 83 percent of
par. The second issue has a face value of $69,028,952, has a 0.06
coupon, matures in 20 years, and sells for 92 percent of par.The most recent dividend was $2.42 and the dividend growth rate
is 0.06. Assume that the overall cost of debt is the weighted
average of that implied by the two outstanding debt issues. Both
bonds make semiannual payments. The tax rate is 0.25.What is Filer's aftertax cost of debt? Enter the answer with 4
decimals (e.g.0.2345)

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