1. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Andalusian Limited (AL) can borrow funds at an interest rate of 970% for a period of four years. Its marginal federal-plus-state tax rate is 35%. AL's after-tax cost of debt is (rounded to two decimal places). At the present time, Andalusian Limited (AL) has 20-year noncallable bonds with a face value o $1,000 that are outstanding. These bonds have a current market price of $1,181.96 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The estimate for its after-tax cost of debt (rounded to two decimal places)? company incurs a federal-plas, state tax rate of 35%. Ir AL wants to issue new debt, what would be reasonable 804% 6.99% 629% 839%