3. Cost of debt To caldulate the after-tax cost of debt, multiply the before-tax cost of debt by 1 + water and Power Company (WPC) can borrow funds at an interest rate of 7.30% for a period or so years, its marginal federal-plus-state tax rate is 4s%. wPC's after-tax cost of debt is places) s rounded to two decirmsal 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 ament market price of $1,229.24 per bond, carry a aupon race ou0%, and distribute annual copon payments. The company incurs a federal-plus-state tax rate of 45%. If WPCwants to iss new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? o 3,00% 2.61% 3.13% caj- O 2.09% nanci Continse without saving MacBookA 2.0 3 4 7 3. Cost of debt To calaulate the after-tax cost of debt, multiply the beore-tax cost of debt by water and Power Company (WPC) can borrow funds at an interest rate of 7.30% for a period of six years marginal federal-plus-state tax rate is 45%. WPCs after-tax cost of debt is p aces). its 0 (00 (rounded to two decimal 4.42% 4.62% 3.42% At the present time, Water and Power Company (WPC) has 5-year noncallabre sonas with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,229.24 per bond, carry a coupon rate of 10%, and distribute annual cupon payments. The company incurs a federal-plus-state tax rate of 45%. 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)? o 3.00% 2.61% 3.13% 2.09% MAC 32-a-55 cia Continue without saving MacBook A 000 F4 ,#6 2 4