Gadgetmaster takes out a $1,000 two-year loan that its bank describes as "a 10.5% interest loan." The loan contract states that Gadgetmaster will get $1,000 at EOY O and repay 200 + 1,000 at EOY 2. The contract also states that Gadgetmaster will pay the bank a fee of $40 at EOY zero, for the right to enter into the agreement. There are no other cash flows in the contract. What is Gadgetmaster's pre-tax cost of capital (rD, pretax) for this loan