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Filer Manufacturing has 5,741,592 shares of common stock outstanding. The current share price is $47.98, and the book value per share is $6.98. Filer Manufacturing

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Filer Manufacturing has 5,741,592 shares of common stock outstanding. The current share price is $47.98, and the book value per share is $6.98. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $49,068,770, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $50,429,329, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $2.36 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 0.26 . What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345)

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