To find the after-tax cost of debt, multiply the before-tax cost of debt by (1 - T) Ferro Co. can borrow at an interest rate of 7.3% for a period of five years. Its marginal federal-plus-state tax rate is 45%. What is Ferro's after-tax cost of debt? 4.0% Ferro Co. has outstanding 15-year no callable bonds with a face value of $1,000. These bonds have a current market price of $1, 329.55, a coupon rate of 12%, and annual coupon payments. The company faces a tax rate of 45%. If the company wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt? 4.02% 5.36% 4.47% 5.14%