CSUSB-Fin-314-Liu: CSUSB-Fin-s FINANCE work 3 Due on Aug 24th Before Midnight Question 3 (of 4) value: 25.00 points Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 96 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. Required: (a) What is the company's pretax cost of debt? (Do not round your intermediate calculations.) | (Click to select (b)If the tax rate is 36 percent, what is the aftertax cost of debt? (Do not round your intermediate calculations (Click to select) References eBook & Resources Worksheet Leaming Objective: 14-02 How to determine a firms cost of debt Difficulty: Basic Section: 14.3 The Costs of Debt and Preferred Stock 40 F7 F1 F2 F3 F4 F5 F6