Telecom Namibia is evaluating its cost of capital under alternative financing arrangements. In consultation with investment bankers, Telecom expects to be able to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a N$2.50 per share dividend at N$25 a share. The common stock of Telecom is currently selling for N$20.00 a share. Telecom expects to pay a dividend of N$150 per share next year. Market analysts foresee a growth in dividends in Invest stock at a rate of 5% per year Telecom marginal tax rate is 35% Determine the after-tax cost of debt for Telecom