St. Johns Company is planning to issue $1,000 par value bonds. The bonds will have a coupon rate of 14 percent and will be sold at a market price of $1050. Flotation costs will amount to 6 percent of market value. The bonds will mature in 15 years and interest payments will be made semi-annually. The company's marginal tax rate is 34%. What is the firm's cost of debt financing? 6.42% 13.85% 10.12% 9.38% 11.52%