For which capital component must you make a tax adjustment when calculating a firm's welghted average cost of capital (WACC)/Preferred stock Debt Equity Three waters Company (TWC) can borrow funds at an interest rate of 9.70% for a period of six years. Its marginal federal plus-state tax rate is 45%. TWC"s after-tax cost of debt is ____(rounded to two decimal places) At the present time. Three waters Company (TWC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1, 555.38 per bond, carry a coupon rate of 11% and distribute annual coupon payments. The company incurs a federal-plus-*state tax rate of 45%. If TWC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places}? 2.41% 3.61% 3.01% 2.71%