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2. 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 Western Gas

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2. 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 Western Gas \& Electric Company (WGC) can borrow funds at an interest rate of 7.30% for a period of five years. Its marginal federate is 45%. WGC's after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas \& Electric Company (WGC) has 10-year noncallable bonds with a face value of $1,000 that are decimal places)? (Note: Round your YTM rate to two decimal place.) 4.19% 6.03% 5.24% 6.29%

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