Almond, Inc has determined the cost of each of its sources of capital and the desired weighting in the capital structure.  See below.  What is its weighted average cost of capital?                                                Source of capital                  Weight                 After‑tax cost ______________________________________________________  Long‑term debt                       40%                             7%  Preferred stock                        10                               13  Common stock equity             50                               15   And if Almond Inc. pays 11.6% interest on its outstanding bonds.  If its tax rate is 40%, what is its after-tax cost of debt?

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