Hewlett-Packard Company (HPQ) has an interest coverage ratio of 2.7. Assume the marginal tax rate is 35%. The risk-free rate of 4% and HPQ market cap is $ 5.5 billion. What is the post-tax cost of debt based on the following two tables? For developed market firms with market cap > $5 billion If interest coverage ratio is Sto Rating is Spread is -100000 0.199999 D2/D 19.38% 0.2 0.649999 C2/C 14.54% 0.65 0.799999 Ca2/CC 11.08% 08 1.249999 Cas CCC 9.00% 1.25 1.499999 83/8- 6.60% 1.5 1.749999 B2/B 5.40% 1.75 1.999999 81/8+ 4.50% 2 2.2499999 Ba2/BB 3.60% 2.25 2.49999 Ba1/88+ 3.00% 2.5 2.999999 Baa2 BBB 2.00% 3 4.249999 A3/A 1.56% 4.25 5.499999 A2/A 1.38% 5.5 6.499999 A1/A+ 1.25% 6.5 8.499999 Aa2/AA 1.00% 8.50 100000 Ass/AAA 0.75% For all emerging market firms and developed market firms with market cap $5 billion If interest coverage ratio is greater than Sto Rating is Spread is -100000 0.499999 02/D 19.38% 0.5 0.799999 C2C 14.54% 0.8 1249999 Ca2/CC 11.08% 1.25 1.499999 Caa CCC 9.00% 15 1999999 83/8- 6.60% 2 2.499999 B2B 5.40% 25 2.999999 81/8+ 4.50% 3 3.499999 Ba2 BB 3.60% 35 3.9999999 Ba1/88+ 3.00% 4 4.499999 Bas2 BBB 2.00% 145 5999999 A3/A- 1.56% 6 7499999 A2/A 1.38% 75 9499999 A1/A+ 1:25% 9.5 17.499999 AA2/AA 1.00% 125 100000 Asa/AAA 0.75%