RTZ has bank borrowings in issue. Interest is payable at a variable rate of interest. The current variable rate of interest payable is 10%. Corporate tax is payable at 30%. What would be the impact on the post-tax cost of borrowings if the variable rate of interest payable increased to 12.20% and the corporate tax rate decreased to 26%. Solution A.An increase of 2.03% B.A decrease of 2.03% C.An increase of 0.17% D.A decrease of 0.17%