10.3 cost of debt. The cost of capital.See attached question.

I I I j Average: / 3 a a In: is the interest rate that a rm pays on any new debt financing. Omni Consumer Products Company (OCP) can borrow funds at an interest rate of 7.30% for a period of eight years. Its marginal federalplus-state tax rate is 40%. OCP's after-tax cost of debt is ___ V , (rounded to two decimal places). At the present time, Omni Consumer Products Company (OCP) has 20-year noncallablel%nds with a face value of urrent market price of $1 company incurs a federal-plus~state tax rate of 40%. If OCP wants ' its aftertax cost of debt (rounded to two decimal places)? Flash Player WIN 28.0.0.161 QB 3.34.1 l'E" EDEN-ZEUS Apha, nil \"grid I-.',r- .- Fl 92013 Cengage Learning erJupl as nun fl Continue m'thout saving