4. The following data pertains to Michalko Corp. Calculate Michalko's cost of debt capital. Michalko Corp. Total Assets $14,680 Interest-Bearing Debt $ 8,124 Average borrowing rate for debt 11.5% Common Equity: Book Value $ 5,120 Market Value $25,700 Marginal Income Tax Rate 37% Market Equity Beta 1.44

A) 11.5%

B) 10.0%

C) 7.2%

D) 4.3%