Consider the case of Purple Lemon Shipbuilders Inc.: Purple Lemon Shipbuilders Inc. can issue a 25-year debt security that pays an annual coupon payment of $75. The bond carries a par value of $1,000 and is currently trading at par. Based on this information, determine the after-tax cost of Purple Lemon's debt if the firm's marginal federal-plus-state tax rate is 30%. Purple Lemon Shipbuilders Inc.'s after-tax cost of debt (rounded to four decimal places) is: 4.4625% 4.2000% 4.7250% 5.250096 Purple Lemon's CFO has pointed out that if these new bonds are issued, the company will incur a flotation cost of 2%. Remember, these flotation costs will be subtracted from the proceeds the firm receives from the sale of its new bonds. Calculate the company's after-tax cost of debt net of the issue's flotation costs. If purple Lemon issues its new bonds and incurs flotation costs of 2%, then its adjusted (net) after-tax cost of debt (rounded to four decimal places) will be: O 5.377690 o 4.9875% 5.7750% 5.5125%