For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACC)? O Debt O Equity O Preferred stock Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 10.20% for a period of seven years. Its marginal fed tax rate is 25%. PRC's after-tax cost of debt is (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that are outs These bonds have a current market price of $1,092.79 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The incurs a federal-plus-state tax rate of 25%. IF PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 07.14% O 8.21% 5.71% 8.57%