The Chilly Corporation wants to issue bonds with a 9.16% coupon rate, given the current market interest rate of 6.27%, and 12 years to maturity. The firm estimates that the bonds will sell for $1,238.75. Their common stock currently sells for $30 per share. Yesterday, the Chilly Corporation paid a dividend of $4 per share, and expects the dividend to grow at a constant rate of 5% per year. The company capital structure is 40% debt and 60% common equity. The applicable corporate tax rate is 35%. Calculate the after-tax COST OF DEBT. Select one: a. 5.95% b. 4.08% O c. 6.27% d. 9.16% The Chilly Corporation wants to issue bonds with a 9.16% coupon rate, given the current market interest rate of 6.27%, and 12 years to maturity. The firm estimates that the bonds will sell for $1,238.75. Their common stock currently sells for $30 per share. Yesterday, the Chilly Corporation paid a dividend of $4 per share, and expects the dividend to grow at a constant rate of 5% per year. The company capital structure is 40% debt and 60% common equity. The applicable corporate tax rate is 35%. Calculate the before-tax COST OF DEBT. Select one: O a. 5.95% b. 9.16% c. 6.27% O d. 4.08%