what is the company's after tax cost of debt [rd * (1-t) ] ? please pick closest answer.

Hilliard Corp. wants to calculate its weighted average cost of capital (WACC). The company's CFO has collected the following information: The company's long-term 30-year semi-annual bonds are currently sold at $900 and coupon rate is 8 percent and par value is $1,000. The company does not have preferred stock. The company's common stock price is $30 per share (Po = $30). The company recently paid a dividend of $2 per share (Do $2.00). = The dividend is expected to grow at a constant rate of 5 percent a year (g = 5%). The company pays a 10 percent flotation cost whenever it issues new common stock (F= 10%). The company's target capital structure shows $200 million debt and $300 million common equity. . The company's tax rate is 40 percent What is the company's after tax cost of debt [ra (1-t)]? Please pick the closest answer. 8.5063% O 7.8788% O 6.5800% O 5.3797 %