Question - Brahtz Corporation has $222 million dollars of interest-bearing debt outstanding at the end of fiscal 2017 year. In addition, the company incurred $26 million dollars of interest expense in 2017.
If the company has a marginal tax rate of 35% calculate Brahtz's cost of debt capital.
A. 9.1%
B. 7.6%
C. 14.1%
D. 11.1%