7. You want to estimate the before-tax cost of debt, ra, for Gardenia Corp. The company has bonds outstanding with a market price of $960.16. The bonds have an annual coupon of$125, a face value of $1,000, and a maturity of 10 years. If flotation costs are 4%, what is Gardenia's before-tax cost of debt? a. b. c. d. e. 13.52% 13.61% 14.00% 15.65% None of the above