London Drug's cost of debt is 6%. The risk-free rate of interest is 2.5%. The expected return on the market portfolio is 7%. After effective taxes, London Drugss effective tax rate is 30%. Its optimal capital structure is 40% debt and 60% equity.
					If London Drugs beta is estimated at 1.3, what is its after tax cost of debt? (PLEASE Answer in decimal format(e.g., 0.0500 with 4 decimal places instead of 5%). DO NOT use % as Moodle doesnot recognize %.)