Graded Assignment Read Chapter 11 Back to Assignment Due Sunday 07.21.19 at 11:45 PM Attempts: Average: 73 2. Cost of debt Aa Aa E To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 11.10% for a period of five years. Its marginal federal-plus-state tax rate is 45%. PRC's after-tax cost of debt is (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,181.96 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? O 6.80% 5.91% 4.73% 5.32% 0 Flash Player WIN 32,0,0,223 22 241 2004-2016 Anis All rights reserved