You are provided the following information on a company. The total market value is $40 million. The capital structure, shown here, is considered to be optimal. Accounting Value Market Value Bonds, $1000 par, 5% coupon, 4% YTM $10,000,000 $10,000,000 Preferred Stock, 5%, $100 par, 100,000 shares $10,000,000 $8,000,000 Common Stock, $1 par, 100,000 shares $100,000 Capital in excess of par $400,000 $22,000,000 * Retained Earnings $13,500,000 * Total market value of common equity a. What is the after-tax cost of debt? (assume the company