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Lowell Corporation has $200 million dollars of interest-bearing debt outstanding at the end of fiscal 2019 year. In addition, the company incurred $12 million dollars

Lowell Corporation has $200 million dollars of interest-bearing debt outstanding at the end of fiscal 2019 year. In addition, the company incurred $12 million dollars of interest expense in 2019. If the company has a marginal tax rate of 30% calculate Gibson's cost of debt capital.

A. 4.2%

B. 9.8%

C. 14.1%

D. 6.0%

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