Calculate brahtz cost of debt capital

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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%

Reference no: EM131968546

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