10. Cremer Inc. has a cost of equity of 15.3% and an unlevered cost of capital of 11.8%. The company has $22,000 in debt that is selling at par value. The levered value of the firm is $41,000 and the tax rate is 34%. What is the pre-tax cost of debt? (a) 4.73% (b) 6.18% (c) 6.59% (d) 7.22% (e) 9.92%.