thing the cost of capital Back to Assignment Attempts Average / 3 2. An overview of a firm's cost of debt The Is the interest rate that a firm pays on any new debt financing, Cute Camel Woodcraft Company (ccwc) can borrow funds at an interest rate of 7.30% for a period of five years. Its marginal federal-plus-state tax rate is 35%. CCWC's after-tax cost of debt is (rounded to two decimal places). At the present time, outo Camel Woodcraft Company (CCWC) has a series of twonty year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,181.96 per bond, carry a coupon rate of 13%, and distribute annual coupon payments The company incurs a federal-plus-state tax rate of 35%. IT CCWC wants to issue new debt, what would be a reasonable estimate for its after tax cost of debt (rounded to two decimal places)? 6.99% 3.39% 3.04% 5.59%