QUESTION 26 Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 9%, paid annually. The tax rate is 40%. If the flotation cost is of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield from the amortization of flotation costs. 5.40% 5.179 5.57% 6.56% 3.40%