Use this information for questions 14, 15, and 16: A firm has a capital structure of 30% debt, 60% common equity, and 10% preferred equity. Note: the capital structure represent the weights. Debt: The bonds pay a 8% semiannual coupon, have a $1000 par value, and have a maturity length of 7 years. The quoted price of the bonds is 110. Common: The firm has common stock with a beta of 1.25. Preferred: The firm has 7% preferred stock. Market: The rate on Treasury bills is 2%, the expected return is 10%, and the tax rate facing the firm is 40% What is the firm's cost of debt? Round to two decimals Enter your answer in percent and omit the % symbol. For example, if your answer is 0.05347 enter 5.35