Target % in Capital Structure 35.00% | 10.00% 55.00% Component Component Cost Cost (pre-tax) (after-tax) Weighted Component Cost Debt Preferred Stock Equity Tax Rate 20.00% WACC- Outstanding Bond Annual Coupons) Time to Maturity years) Preferred Stock Info Preferred Divided $2.00 Current Market Price Common Stock Info Dividend $200 Current Price 15 $45.00 $42.00 Coupon Rate APR Expected Growth in 2.00% Dividends Expected Return on Equity 15.00% Preferred ield Face Value $1,000 Current Market Price YTM $1,240 Based on the information in the table, what is the after tax cost of debt? 2.39%