Which of the Following Is a True Statement

Multiple Choice

Which of the following is a true statement?

A) To estimate the before-tax cost of debt, we need to solve for the Yield to Maturity (YTM) on the firm's existing debt.
B) To estimate the before-tax cost of debt, we need to solve for the Yield to Call (YTC) on the firm's existing debt.
C) To estimate the before-tax cost of debt, we use the coupon rate on the firm's existing debt.
D) To estimate the before-tax cost of debt, we use the average rate on the firm's existing debt.