Flotation costs and the cost of debt in March of 2020 PepsiCo, Inc. (PEP) sold $5750 millice worth of 40 -year 3.75% coupon bonds that

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Flotation costs and the cost of debt in March of 2020 PepsiCo, Inc. (PEP) sold $5750 millice worth of 40 -year 3.75% coupon bonds that pay semi-annual interest. At the time the bonds were issued, the market paid $1,004.27 per bond and the fotation cost was $18.26 per bond. Peps's corporate tax rate is 21%. a. Ignoring flotation costs, what is Pepsis before-tax and atter-tax coats of debt? b. Considering flotation costs, what is Pepsi's belore-tax and after-tax costs of debt? a. lgnoring fotation cost, Pepsi's before-tax cost of debt is h. (Round to two decimal places.) lanoring flotation cost, Pepsis after tax cost of debt is \%. (Round to two decimal places.) b. Considering fiotation cost. Pepar's before-tax cost of debt is \%. (Round to two decimal places:) Considering fotation cost. Pepsis ater-tax cost of debt is Y. (Round to two decimal places.)