Question $4$

$2$ pts

Filer Manufacturing has $8,844,746$ shares of common stock outstanding. The current share price is $$36\mathrm{.}03,$ and the book value per share is $$5\mathrm{.}76.$ Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $$52,784,059,$ has a $0\mathrm{.}05$ coupon, matures in $10$ years and sells for $83$ percent of par. The second issue has a face value of $$66,153,787,$ has a $0\mathrm{.}06$ coupon, matures in $20$ years, and sells for $92$ percent of par.

The most recent dividend was $$2\mathrm{.}28$ and the dividend growth rate is $0\mathrm{.}03.$ Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is $0\mathrm{.}37.$

What is Filer's aftertax cost of debt? Enter the answer with $4$ decimals $($e$.$g$.0\mathrm{.}2345)$