er 11 Assignment mpta: Keep the Highest: 13 An overview of a firm's cost of debt which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WAC Debt Preferred stock Equity Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of five years. Its marginal federal-plus-state tax rates 30%. WPC's after tax cost of debt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 34%, and distribute annual coupon payments. The company incurs federal-plus-state tax rate of 30%. WPC wants to se new debt, what would be a reasonable estimate for its after-tax cost of debt rounded to two decimal places) 2.00% 3.32% 2.60% MacBook Air