Tobin's Barbeque has a bank loan at 10% interest and an after-tax cost of debt of 4%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
OPTIONS BELOW:
Multiple Choice
a) 4.40%
b) 9.45%
c) 1.85%
d) None of these options are true.