Chapter 11 Assignment Back to Assignment Attempts: Average: 13 2. An overview of a firm's cost of debt The x is the interest rate that a firm pays on any new debt financing Thre 45% before-tax cost of debt can borrow funds at an interest rate of 11.10% for a period of four years. Its marginal federal after-tax cost of debt Hebt is (rounded to two decimal places). de la At the present time, Three Waters Company (TWC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding have a current market price of $1,555.38 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The com federal-plus-state tax rate of 45%. IF TWC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt two decimal places)? O 2.41% O 3.01% O 3.46% O 3.61% Save 8 Conti Grade It Now nia B Chapter 11 Assignment Back to Assignment Attempts: D T D Average: 73 Average: 13 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Three Waters Company (TWC) can borrow funds at an interest rate of 11.10% for a period of four years. Its marginal federal-plus -5%. TWC's after-tax cost of debt is (rounded to two decimal places). t the present time, Three Waters Core WC) has 15-year noncallable bonds with a face value of $1,000 that are outstandin eve a current market price of $1,555 6.11% nd, carry a coupon rate of 11%, and distribute annual coupon payments. The com deral-plus-state tax rate of 45%. If ts to issue new debt, what would be a reasonable estimate for its after-tax cost 7.03% o decimal places)? 5.80% O 2.41% O 3.01% O 3.46% 3.61%