Company A reported $12 million of Earnings Before Interest and Tax and $2 million of Interest expense. Assume the marginal tax rate is 35%. The risk-free rate of 2.5% and Company A's market cap is $34.83 billion. What is the after tax cost of debt based on the following two tables?

Select answer:

A. 2.275%

B. 3.5%

C. 3.4%

D. 2.21%

For smaller non-financial service companies with market cap S 5 billion Rating is AAA AA Spread is 0.40% 0.70% A+ 0.90% A If interest coverage ratio is >