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Business, 08.11.2019 03:31 lifeofabe214

At the present time, western gas & electric company (wgc) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $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 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)? o 4.22% o 6.07% o 6.34% o 5.28%

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