7. An everview of a firm's cost of debt To calculate the afteriax cost of debt, multiply the before tix cost of debt by Western Gas A Electric Coenpany (WGC) can borrow funds at an interest rate of 11.10\% for a period of six vears. Its maroinal federal-plus. State tax rate b 23\%. Wochs after-tax cost of debe is (founded to two deximal placeo). At the present lime, Western cias 8 Electric Coenouny (WGC) has 15-year nofcallable bonde with a face valiat of $1,000 that are outstanding. These. bonds have a current market price of 51,329,55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-rlus state tax rate of 25%. If WCC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to fwo decimal places)? (Note; Round your YTM rate to two decimal place.) 2. An overview of a lirm's cost of debt To calculate the after-tax cost of debt, multipiy the before-tax cost of debt by Western 6a5 3. Bectric Company (WCC) 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%. Wocs after tax cost of debt is (rounded to two decimal places). At the present time, Westem Gas s Electric Company (WGC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-olus-state tax rate of 25%. If wGC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two dedimal places)? (Note: Round your YTM rate to two decimal place.) 5.48% 7.3145 7.00% 6.09%