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Hello! Help with these two questions please 2. An overview of a firm's cost of debt For which capital component must you make a tax

Hello! Help with these two questions please

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2. An overview of a firm's cost of debt For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACC)? Equity Preferred stock Debt Western Gas \& Electric Company (WGC) can borrow funds at an interest rate of 12.50% for a period of eight years. Its marginal federal-plus-state tax rate is 25%. WGC's after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas \& Electric NGC) has 10 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,27} id, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If WGC v le new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YT lo decimal place.) 4.74% 5.27% 6.06% 4.22% For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACC)? Equity Preferred stock Debt Western Gas \& Electric Company (WGC) can borrow funds at an interest rate of 12.50% for a period of eight years. Its marginal federal-plus-state tax rate is 25%. WGC's after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas \& Electric Company (WGC) has 10 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,278.41 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If WGC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 4.74% 5.27% 6.06% 4.22%

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