(1 his information is used for problems 20 - 25) The Envelope Company has the following liabilities and equity Lattes ad Suckholders Equity Accounts Papable and Accruals Shon Term Notes Parable Long Term Bank Financing Tozabites Stockaddes Equity Toallities and Equity $ 550 $1,100 $2,000 $3,650 $3,250 $6,900 The risk free rate of return is 3.0%. The market rate of return is 12.5%. The Beta is 1.2. The P/E ratio is 7.1. The stock price is $1480. The last annual dividend was $0.60. This dividend is expected to grow 4.5% per year in the future. There are 255 shares of common stock outstanding. Envelope's tax rate is 35%. The interest rate is 2.75% on short term notes payable and 5.3% on long term bank financing What is the after tax cost of short term notes payable? 0.0% 2.755 03.4574 5.75% O 179