Given the following cash flows: Year 1,000 Cash flow will CF -3,500 600 grow at a constant rate g-6% We choose the following capital structure plan: Debt Equity 30% Plan 70% Equity Benchmark The unlevered beta is 2, tax rate s 40%. Market Return is 16%, risk-free rate is 3%. Debt Benchmark Par: 100, Annual Coupon: 6%, 10-year to maturity, Selling at $88.43 Q14. What is the before-tax cost of debt 8.5% O 6.3% 6.9%