Success Tips Success Tips eedback To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 11.10% for a period of seven years. Its marginal federal-plus-state tax rate is 40%. PRC's after-tax cost of debt is (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 40%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 4.38% 4.87% 5.60% 5.84%

To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Derpetuaicold Refrigerabion Company (PRC) can borrow funds at an interest rate of 11.10% for a period of seven years. Its marginal federal-plus-state tax rate is 40%. PRC's after-tax cost of debe is (rounded to two decimal places). At the present tires, Perpetualcold Refrigeration Company (PRC) has 15 -year noncalable bonds with o face value of 51,000 that are outstanding. These bonds kwe a current market price of $1,329.55 per bond, carry a coupen rate of 12%, and sistribute annual coupon payments. The company incurs a federal-plus-state tax rate of 40%. If PRC wamts to issue new debt, what would be a reasonable estimate for its after-tax cost of deb? (rounded to two decimpl places)? 4.38% 4.974 5.00% sith