Question 14 The following questions use selected financial information on Essex Corp. Essex Selected Financial Data Total Assets $4.000 million Capital Structure 60% debt/40% equity |EBIT $700 million Tax rate 35% ROE 23.37% Pre-tax debt cost 5.2% Cost of equity 15% Market Price per share $48.80 Price to book ratio 2.10 Note: interest expense is tax-deductible What is closest to Essex's net cost of debt after tax? Answers $125 million $81 million $240 million $135 million