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2. An overview of a firm's cost of deot To caiculate the after-tax cost of debt, multiply the before-tax cost of debt by (1T). Westem Gas \& Electric Company (WGC) can borrow funds at an interest rate of 11.10% for a period of six years. Its marginal federal-plus-state tax rate is 25%. WGC's after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas a Electric Company (WGC) has 10 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,495.56 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The cornpany incurs a federal-plus-state tax rate of 25%. If weC wants to issue new debt, what would be a reasonable estamate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your VTM rate to two docimal ploce.) 2.94% 2.35% 2.65% 3.38% 2. An overview of a firm's cost of deot To caiculate the after-tax cost of debt, multiply the before-tax cost of debt by (1T). Westem Gas \& Electric Company (WGC) can borrow funds at an interest rate of 11.10% for a period of six years. Its marginal federal-plus-state tax rate is 25%. WGC's after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas a Electric Company (WGC) has 10 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,495.56 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The cornpany incurs a federal-plus-state tax rate of 25%. If weC wants to issue new debt, what would be a reasonable estamate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your VTM rate to two docimal ploce.) 2.94% 2.35% 2.65% 3.38%