Venus Limited has market value of debt of $80 million, market value of equity of $140 million, and cash of $20 million. The pre-tax cost of debt is 10%, the cost of equity is 14%, and the tax rate is 30%. The after-tax cost of debt is …………Single choice

A

14.00%

B

30.00%

C

10.00%

D

7.00%

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