2. An overview of a firm's cost of debt The before-tax cost of debt is the interest rate that a fim pays on any new debt financing Andalusian Limited (AL) can borrow funds at an interest rate of 12:50% for a period of six years. Its marginal federal-plus-state tax rate is 25%. AL'S (rounded to two decimal places) after-tax cost of debt is At the present time, Andalusion Limited (AL) has 20-year noncollable bonds with a face value of $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 company incurs o federal plus state tax rate of 259 if at wants to four 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) 9.67% 00.225 08.06% 6:459 Andalusian Limited (AL) can borrow funds at an interest rate of 12.50% after-tax cost of debt is (rounded to two decimal places) 12.50% At the present time, And ited (AL) has 20-year noncallable bo current market price of $10.79% per bond, carry a coupon rate of 13% state tax rate of 25%. If o issue new debt, what would be an 9.38% places)? (Note: Round y te to two decimal place.) 7.97% 0 9.67% O 9.27% 08.06% O 6.45%