Terek Corporation has 7.5 million shares of common stock outstanding, 280,000 shares of 4 percent preferred stock outsta

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Terek Corporation has 7.5 million shares of common stock
outstanding, 280,000 shares of 4 percent preferred stock
outstanding ($100 par), and 180,000 6 percent semiannual coupon
bonds outstanding, Par value $1,000 each. The common stock
currently sells for $50 per share and has a beta of 1.6, the
preferred stock currently sells for $45 per share, and the bonds
have 24 years to maturity and sell for 130.67 percent of par. The
market risk premium is 8 percent/ T-bills are yielding 3 percent
and the company's tax rate is 21 percent.
What is the After tax cost of Debt?