The is the interest rate that a firm pays on any new debt financing Water and Power Company (WPC) can borrow funds at an interest rate of 9.70% for a period of five years. Ils marginal federal-plus-state tax rate is 25%. WPC's after-tax cost of debt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incursa federal-plus-state tax rate of 25%. IF WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 7.64% 06.11% 6.88% O 8.79% 2. An overview of a firm's cost of debt a The is the interest rate that a firm pays on any new debt financing. Wat after-tax cost of debt PC) can borrow funds at an interest rate of 9.70% for a period of five years. Its margin 259 before tax cost of debt Hebt is (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon paymer federal-plus-state tax rate of 25%. If WPC wants to issue new debt, what would be a reasonable estimate for its after decimal places)? (Note: Round your YTM rate to two decimal place.) O 7.64% O 6.11% a 06.88% O 8.79% Grade It Now 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Water and Power Company (WPC) can borrow funds at an interest rate of 9.70% for a period of five years. Its marginal federal-p 25%. WPC's after-tax cost of debt is (rounded to two decimal places). a 9.70% At the present time, Water and Power (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outsta have a current market price of $1.137.28% fond, carry a coupon rate of 12%, and distribute annual coupon payments. The cor federal-plus-state tax rate of 25%. If s to issue new debt, what would be a reasonable estimate for its after tax cost of decimal places)? (Note: Round your po two decimal place.) a 6.92% 8.37% O 7.64% 06.11% 6.88% 8.79%