Before-tax cost of debt,Gronseth Drywall Systems, Inc., is in discussions with its investment bankers regarding the issuance of new bonds. The investment banker has informed the firm that different maturities will carry different coupon rates and sell at different prices. The firm must choose among several alternatives. In each case, the bonds will have a $1000 par value and flotation costs will be $40 per bond. - Coupon rate 5% - Time to maturity 12 years - Premium or discount $180 a. Calculate the before-tax cost of financing ___ % b. The before-tax cost of debt is ___%