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ttemitKep the lighest: 13 Attention: Due to a bug in Google Chrome this page may not function correctly, Click here to learn more 3. Cost
ttemitKep the lighest: 13 Attention: Due to a bug in Google Chrome this page may not function correctly, Click here to learn more 3. Cost of debt To calaulate the after-tax cost of debt, multiply the before-tax cost of debt by Aa Aa Water and Power Company (WPC) can borrow funds at an interest rate of 7.30% for a period of six years. Its marginal federal-plus-state tax rate is 30%. WPC's after-tax cost of debt is places) (rounded ta two decimal At the present tine, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a urrent market price of S 1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 30%. If WPC wants to ssue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 5.68% o 5.11% 6.53% 6.82% Save&Continue
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