For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACC)? Debt Preferred stock Common stock Fuzzy Button Clothing Company (FBCC) can borrow funds at an interest rate of 10.20\% for a period of elght years. Its marginal federai-plus-state tax rate is 30%. FBCCs after-tax cost of debt is (rounded to two decimal places). At the present time, Fuzzy Button Clothing Company (FBCC) has a series of fifeen-year honcallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments: The company incurs a federal-plus-state tax rate of 30%. If FBCC wants to issue new debt, what would be a reasonable estimate for its after-tax cost " of debt (rounded to two decimal places)? 7.13% 5.70% B. 56% 6.42%