Please find the after tax cost of debt using current market YTM with the following information

ABC INC. 2016 Liabilities and Equity Accounts payable* $10, 000, 000 Accruals 59, 000, 000 Current Liabilities $19, 000, 000 Long - term debt $40, 000, 000 Total Liabilities $59, 000, 000 Preferred stock 5, 000, 000 Common Stock 30, 000, 000 Retained earnings 45, 000, 000 Total common equity* $75, 000, 000 Total liabilities & equity* $139, 000, 000 INPUT DATA EPS $1. 60 Bonds outstanding ( $1 , 000 par value , noncallable )* 40, 000 Do 50. 70 Bond Coupon rate ( payable semiannually* ) 5. 65% PO $15. 00 Market price of the bonds* 5881. 00 7.5% Flotation cost for common 9.090 8 Common shares outstanding 10, 000, 000 Company beta 1 . 4 Price of the Preferred , P . $30. 00 Market risk premium , I'M - I'RE 6. 090 Do ( preferred dividend ) 52.75 Risk - free rate , I'RE 4.5%/0 \\Preferred shares outstanding* 200, 000 Tax Rate 25%b . Calculate the after- tax cost of debt using current market > I'M. Assume a 20 - year maturity*