A,B,C?

s Back to Assignment Attempts: Keep the Highest: /14 Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more 2. Cost of debt Aa Aa E To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1 - T) Western Gas & Electric Company (wGC) can borrow funds at an interest rate of 11.10% for a period of six years. Its marginal federal-plus-state tax rate is 35%. WGC's after-tax cost of debt is (rounded to two decimal At the present time, Western Gas & Electric Company (WGC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,050.76 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If WGC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 6.79% 6.51% 4.53% 5.66%