To calculate the afteritax cost of debt, multiply the before-tax cost of debc by Westem Gas \& Electric Company (WGC) can borrow funds at an interest rate of 10.20% for a period ef five years. fts marginal federal-plus-state tax rate is 25%. Wcich after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas s. Electric Company (WCC) has 10 -year noncaliable bonds with a face value of i1,000 that are outstanding. These bonds have a current market price of $1,495.56 per bend, carry a coupon rate of sow, and distribute annual coupon parments, The compary incus a federal-plis-Atate tax rate of 25%, If WGC wants ta issue new debl, 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.) 2.35% 2.945 3.53% 330%