Attempts: Average: 3 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 Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 10.20% for a period of five years. Its marginal federal-plus-st tax rate is 40%. PRC's after-tax cost of debt is (rounded to two decimal places) At the present time, Perpetualcold Refrigeration Company (PRC) has 15-year noncallable bonds with a face value of $1,000 that we outstanding These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The comp incurs a federal-plus-state tax rate of 40%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 07.33% 4.89% O 6.119 5.50% Grade It Now Save & Continue Continue without