Vans Shoes, Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50 per share. The firms debt is publicly traded and was recently quoted at 90% of face value. It has a total face value of $10 million, and it is currently priced to yield 8%. The risk free rate is 2% and the market risk premium is 8%. Youve estimated that the firm has a beta of 1.20. The corporate tax rate is 21%. Vans Shoes, Inc. has 2 million shares of stock outstanding. The stock currently sells for $12.50 per share. The firms debt is publicly traded and was recently quoted at 90% of face value. It has a total face value of $10 million, and it is currently priced to yield 8%. The risk free rate is 2% and the market risk premium is 8%. Youve estimated that the firm has a beta of 1.20. The corporate tax rate is 21%. What is the cost of debt for Vans Shoes, Inc.

What is the cost of debt for Vans Shoes, Inc.?