Pepperell Inc. as a U.S. multinational corporation has a debt to total assets ratio of 45%. The companys weighted average cost of capital is 11.5% and it has a 40% tax rate. If the companys global cost of common equity is 14.5%, what is the pretax cost of debt?

18.50%

10.18%

10.00%

13.06%

7.83%