Clifford, Inc. has a target debt-equity ratio of .6. Its WACC is 7%, and the tax rate is 20%. If the company's cost of equity is 10%, what is the pretax cost of debt? .036 .028 .02 .025 .045 Jiminy's Cricket Farm issued a 30-year 6\% semiannual bond ten years ago. The bond currently sells for 105 percent of face value. The company's tax rate is 20%. What is the aftertax cost of debt? 5.58% 4.47% 2.23% 4.96% 2.79%