12) Sensitive performance measures motivate the manager as well as limit the manager's exposure to risk, reducing the cost of providing incentives. B) are not affected by managers' performance and fail to induce them to improve C) the salary component of the managers D) increases the exposure of credit Times Corporation, whose tax rate is 30%, has two sources of funds: long-term debt with a market value of $6,500,000 and an interest rate of 7%, and equity capital with a market value of $18,000,000 and a cost of equity of 11%. Times Corporation's after-tax cost of debt is A) 11.00% B) 4.90% C) 9.38% D) 7.00%