10. Some answers cut off in multiple choice question. Provided below A. 3 B. 3.5C. 5.9D. 5 E. 4.1

The capital structure of a company is composed of debt and equity as follows. Given the following information, what is the after-tax cost of debt in the capital structure? The tax rate is %30. Equity Debt # of outstanding shares 10,000 Stock price (each) $50 Expected dividend per share $4 Dividend growth rate 3% # of outstanding bonds 5,000 Coupon rate 5% Bond price (each) $950 Years to maturity 7 K Multiple Choice O 3%. O 3.5%