The Pizza Palace has a cost of equity of 14.4 percent and an unlevered cost of capital of 10percent. The company has $18,000 in debt that is selling at par value. The levered value of the firm is$32,000 and the tax rate is 35 percent. What is the pre-tax cost of debt? Select one: a. 7.38 percent b. 4.73 percent c. 6.18 percent d. 6.59 percent The Pizza Palace has a cost of equity of 14.4 percent and an unlevered cost of capital of 10percent. The company has $18,000 in debt that is selling at par value. The levered value of the firm is$32,000 and the tax rate is 35 percent. What is the pre-tax cost of debt? Select one: a. 7.38 percent b. 4.73 percent c. 6.18 percent d. 6.59 percent