2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Water and Power Company (WPC) can borrow funds at an interest rate of 9.70% for a period of seven years. Its marginal federal-plus-state tax rate is 25%. WPC's after-tax cost of debt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 5-year noncaltable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If WPC wants to issue new debt, what would be a reasonable estimates for its after tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 03.10% 2.79% O 3.72% C 3.579 Grade it Now Save & Continue 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Wat after-tax cost of debt PC) can borrow funds at an interest rate of 9.70% for a period of seven years. Its marginal federal-plus-state tax rate is 25 before tax cost of debt hebt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 3.10% 2.79% O 3.72% O 3.57% Grade It Now Save & Continue 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Water and Power Company (WPC) can borrow funds at an interest rate of 9.70% for a period of seven years. Its marginal federal-plus-state tax rate is 25%. WPC's after-tax cost of debt is (rounded to two decimal places). At the present time, Water and Power 7.28% (WPC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,434 9.70% Jond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus state tax rate of 25%. sto issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two 8.37% dedmal places)? (Note: Round your o two decimal place.) 6.92% 3.10% 2.79% 3.579 Grade it Now Save & Continue