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Nexum Inc. has a target debt-equity ratio of 1.25. Its WACC is 9.2%, and the tax rate is 35%. If Nexum's cost of equity is

Nexum Inc. has a target debt-equity ratio of 1.25. Its WACC is 9.2%, and the tax rate is 35%. If Nexum's cost of equity is 14%, what is its pre-tax cost of debt? A) 8.25% B) 6.45% C) 7.35% D) 9.15% OE) 10.05%

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