Question 8 20 pts LO3 Component Component Weighted Cost (pre- Cost (after Component tax) Target % in Capital Structure 25.00% 18.00% 6700% tax) Cost Debt Preferred Stock Equity Tax Rate 35.00% WACC Outstanding Bond (Annual Coupons) Preferred Stock Info Preferred Divided Current Market $45.00 Price Common Stock Info Current Dividend $2.00 $2.00 Time to Maturity (years) 10 Current Price $42.00 Expected Growth in Dividends Expected Return on Equity Coupon Rate Preferred Yield 6.00% 2.00% PR Face Value $1,000 Current Market Price YTM $1,240 Based on the information in the table, what is the after tax cost of deb? O 0.51% 2.06% 3.16% O 4.44%