A firms capital structure consists of 30% long-term debt. At present, the company can raise debt by selling 16-year bonds with a 10.7% annual coupon interest rate. The firm is in a 39.7% income tax bracket. Its bonds generally require an average discount of $44 per bond and flotation costs of $32 per bond when being sold. Required: Calculate the firms current after-tax cost of long-term debt. Answer % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)

Question 10 Not yet answered A firm's capital structure consists of 30% long-term debt. At present, the company can raise debt by selling 16-year bonds with a 10.7% annual coupon interest rate. The firm is in a 39.7% income tax bracket. Its bonds generally require an average discount of $44 per bond and flotation costs of $32 per bond when being sold. Marked out of 10.00 P Flag question Required: Calculate the firm's current after-tax cost of long-term debt. % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)