Jeremy Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current cost of debt can be estimated based on its 20-year bond that is being issued this year with the flotation cost of 10%. It has coupon rate of 12% S.E. Today it is priced at $1,125. The companys tax rate is 35 percent. What is the firm's after-tax cost of debt, net rd? 15.06% 6.83% 10.5% Correct! 7.68%