Perpetua!cold Refrigeration Company (PR Its marginal federal-plus-state tax rate is places). C) can borrow funds at an interest rate of 12.50% for a period of six years. 45%. PRC's after-tax cost of debt is 6.88% (rounded to two decimal At the present time, Perpetualcold Refrigeration Company (PRC) has S-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,050.76 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of asvo, iERC nants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 0 4.31% 4.79% 5.51% 5.75%