The dollar cost of debt for john galt industries is 8.0%. the firm faces a tax rate of 40% on all income, no matter where it is earned. galt needs to know its yen cost of debt. the risk-free interest rates on dollars and yen are r% = 6% and r¥ = 2%, respectively. galt is willing to assume that capital markets are internationally integrated and that its free cash flows are uncorrelated with the yen-dollar spot rate. galt's after-tax cost of debt in yen is closest to:
a) 0.9%
b) 2.0%
c) 3.9%
d) 4.8%