Happy Lion Manufacturing is considering issuing a new twenty-five-year debt issue that would pay an annual coupon payment of $95. Each bond in the issue would carry a $1,000 par value and would be expected to be sold for a market price equal to its par value. Happy Lion's CFO has pointed out that the firm will incur a flotation cost of 3% when initially issuing the bond issue. Remember, these flotation costs will be subtracted from the proceeds the firm will receive after issuing its new bonds. The firm's marginal federal-plus-state tax rate is 30%. To see the effect of flotation costs on Happy Lion's after-tax cost of debt, calculate the before-tax and after-tax costs of the firm's debt issue with and without its flotation costs, and insert the correct costs into the boxes. (Hint: Round your answer to two decimal places.) % Before-tax cost of debt without flotation cost: After-tax cost of debt without flotation cost: % Before-tax cost of debt with flotation cost: % After-tax cost of debt with flotation cost: %