tax rate is at 21%

o Risk Free Rate 3% o Market Return 8% o ERP = Market return - Rf = 5% o Perpetuity Growth Rates Dividend Growth Rate 3% . FCFF Growth Rate 3% . FCFE Growth Rate 3% . Tax rate 20%. Assuming that 3M has $16 billion in long term debt. Amount Maturity Yield To Issue Weights $(Mil) Date + Maturity MMM 3.25% 2,750 0.17 1/15/2025 3.25% MMM 2.16% 5,800 0.36 1/15/2035 2.16% MMM 2.03% 850 0.05 1/15/2033 2.03% MMM 3.47% 3,500 0.22 12/1/2040 3.47% MMM 3.07% 3,100 0.19 12/1/2036 3.07% What is the weighted average cost of debt (average pre-tax cost of debt)? 2.80% 6.13% 4.23% 3.72% Assuming that 3M has $16 billion in long term debt. Amount Yield To Issue Weights Maturity Date $(Mil) Maturity MMM 3.25% 2,750 0.17 1/15/2025 3.25% MMM 2.16% 5,800 0.36 1/15/2035 2.16% MMM 2.03% 850 0.05 1/15/2033 2.03% MMM 3.47% 3,500 0.22 12/1/2040 3.47% 3.07% MMM 3.07% 3,100 0.19 12/1/2036 Assuming the marginal tax rate is 21%, what is 3M's after-tax cost of debt? 9.2% 7.4% 1.2% 2,21% pts