. An overview of a firm's cost of debt or which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACC)? Debt Common stock Preferred stock Fuzzy Button Clothing Company (FBCC) can borrow funds at an interest rate of 10.20% for a period of eight years. Its marginal federal-plus-state tax rate is 30%. FBCC's after-tax cost of debt is (rounded to two decimal places). At the present time, Fuzzy Button Clothing 7.85% FBCC) has a series of five-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current ma 7.14% for $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax o. If FBCC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt crounded to two decimal places)? 6.78% O 3.47% 6.07% 2.39% 3.32% 2,60%