6. If Pelly ASA were an all-equity company, it would have had a beta of 1.1. The company has a target debt-equity ratio of 0.40. The expected return on the market portfolio is 12%, and the risk free rate is 5%. The company has one bond issue outstanding that matures in 20 years and has a 10% coupon rate. The coupon is paid annually. The bond currently sells for NOK 90.00. the face value of the bond is NOK 100. The corporate tax rate is 28%. What is the company's cost of debt before tax? (a) 5.00% (b) 7.00% (c) 10.00% (d) 11.28%. (e) I choose not to