Problem - JollyFolly, Inc. - The following data pertains to JollyFolly, Inc., a manufacturer of candy (dollar amounts in thousands).
Total Assets $722,314
Interest-Bearing Debt (Market value) $199,949
Common Equity: Book Value $244,322
Market Value $589,859
Marginal Income Tax Rate 35%
Market Equity Beta 1.8
Risk Free Rate 5.20%
Market Risk Premium 6.50%
If WACC is 13.41%, what is the after-tax cost of debt for the company? Round your answer using 4 decimal places (e.g., .0565).