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A company has a cost of equity of 15.22% and an unlevered cost of capital of 11.29%.The company has $20,117 in debt that is selling
A company has a cost of equity of 15.22% and an unlevered cost of capital of 11.29%.The company has $20,117 in debt that is selling at par value.The levered value of the firm is $35,756, and the tax rate is 34%.What is the pre-tax cost of debt?
6.16%
6.33%
6.49%
6.66%
6.83%
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