If a firm is losing money, the after-tax cost of debt is:

A) equal to k_d(1 - T) .
B) found by trial and error.
C) equal to the pretax cost of debt.
D) None of the above

After-Tax Cost

The actual cost of an expense or investment after accounting for the effects of taxes.

Pretax Cost

The expense or cost incurred by a business before the deduction of taxes.

Debt

Money owed by one party to another, under conditions of repayment often including interest.