Flotation costs and the cost of debt in March of 2020 PepsiCa, inc. (PEP) sold $750 milicn worth of 30 -year 5 sow coupon bonds that pay semi-annual interest. At the fime the bonds nere issued, the market paid $1,005.92 per bond and the fotation cost was $17.63 per bond. Pepe's componte tax rote is 21%. a. Ignoring flotation costs, what is Pepal's before-tax and after-tax costs of debt? b. Considering fotason costs, what is Pepars before-tax and after-tax costs of debe? a. Ignoring flotation cost, Pepsis before-tax cost of debt is is. (Fiound to two decimal places.) Ignoring fotation cost, Peosis after-tax cost of debt is \%. (Round to two decimal places.) Considering foctation cost. Pepsis afier-tax cost of debt is is. (Round to two decimal places)