The Allied Group intends to expand the company's operation by making significant investments in several opportunities available to the group. Accordingly, the group has identified a need for additional financing in preferred and new common stock and new bond issues. The $($Krf$)$ risk$-$free rate for the company is $7\%,$ and the appropriate tax rate is $40\%.$ Also, the beta coefficient for the company is $1\mathrm{.}3$ and the market risk premium $($Km$)$ is $12\%.$

New Debt $($Kd$)$

The company has been advised that new bonds can be sold on the market at par $($$$1000)$ with an annual coupon of $8\%,$ for $30$ years.

New Common Stock

Market analysis has determined that given the positive history of the firm, new common stock can be sold at $$29$ per share, with the last dividend being paid of $$2\mathrm{.}25$ per share. The growth rate on any new common stock has been estimated at a constant rate of $15\%$ per year for the next $3$ years.

Preferred Stock

New Preferred Stock can be issued with an annual dividend of $10\%$ of par and is paid annually and currently would sell for $$90$ per share. $$ What is the after$-$tax cost as a percentage $($e$.$g$.,$ interest rate$)$ of new debt today?