Your first job after graduation is in the corporate finance department of a Fortune 500 firm. The firm wants to raise $10 billion in funds and asks you to compute the cost of preferred, the cost of debt, and the weighted average cost of capital, WACC. What is the before-tax cost of debt if it issues 10-year bonds with a face value of $1,000; each bond pays $30 every six months; the flotation cost is $20 per bond, and if the market rate of interest is 6%? 9.10% 7.19 5.49 6.27 4.90. What is the after-tax cost of debt if the firm is in the 30% tax bracket