The ____ is the interest rate that a firm pays on any new debt financing. Western Gas & Electric Company (WGC) can borrow funds at an interest rate of 11.10% for a period of seven years. Its marginal federal-plus-state tax rate is 30%. WGC's after-tax cost of debt is (rounded to two decimal places). 7.77% 11.10% 8.94% 6.61% At the present time, Western Gas & Electric Company (WGC) has 5-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 30%. If WGC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 6.09% 4.87% 7.00% 7.31%