Flotation costs and the cost of debt In March of 2020 PepsiCo, Inc (PEP) sold $750 milion worth of 35 -year 5.25% coupon bonds that pay semi-annuat interest. At the fir pald $99189 per bond and the flotation cost was $1800 per bond. Popsi's corporato tax rate is 21% a. Ignormg flotation costs, what is Pepsi's bofore tax and affer-tax costs of debt? b. Considering flotation costs, what is Pepsi's before-tax and after-tax costs of debat? a. Ignoring flotation cost. Pepsis before-tax cost of debt is 16. (Round to two decimal places)