The coupon rate on a debt issue is 7%. If the yield to maturity on the debt is 11%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 41%? (Round your answer to 2 decimal places.)

5.14%

7.84%

6.49%

8.64%

The coupon rate on an issue of debt is 11%. The yield to maturity on this issue is 10%. The corporate tax rate is 37%. What would be the approximate after-tax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.)

6.30%

7.75%

4.95%

8.45%

Tobin's Barbeque has a bank loan at 8% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

9.00%

14.05%

6.45%

none of these