IBM company's Stock and Bond information is provided below:

Bond Time to Maturity: 15-years; Annual Coupon Rate: 6.00%; PAR Value: $1000; Currently trading at: $1275.54; Corp Tax Rate: 25.00%

Preferred Stock Preferred Stock Price: $65.00; Preferred Annual Dividend: $3.50

Common Stock (Method 1) Equity Beta: 1.3; Risk-free Rate: 3.00%; Market Risk Premium: 6.00%

Common Stock (Method 2) Long-run earnings growth: 7.00%; Expected Dividend (in one year): $2.20; Current Stock Price: $61.00

How much is IBMs after-tax cost of debt, if the corporate tax rate for the company is 25.0%?

Enter your answer in the following format: 0.1234;

Hint: Answer is between 0.024 and 0.0294