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OmniPlex Inc. has debt-equity ratio of 0.65. Its WACC is 8.1%, and the tax rate is 23%. If the companys cost of equity is 11%,

OmniPlex Inc. has debt-equity ratio of 0.65. Its WACC is 8.1%, and the tax rate is 23%. If the companys cost of equity is 11%, what is its pretax cost of debt?

A. 5.12%

B. 4.73%

C. 4.21%

D. 5.72%

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