Which is more relevant, the pretax or the after-tax cost of debt? Why?
A. The pretax cost of debt is more relevant because it is the cost that is most easily calculate.
B. The after-tax cost of debt is more relevant because it is the actual cost of debt to the company.
C. The pretax cost of debt is equal to the after-tax cost of debt, so it makes no difference.
D. None of the above.