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4 pts Question 19 19. KP Corporation's target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds
4 pts Question 19 19. KP Corporation's target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firm's marginal tax rate is 35 percent. Which of the following is Rollins' after-tax cost of debt? (Round off the answer to one decimal place.) e. 9.5 percent c. 6.8 percent d. 5.3 percent b. 7.0 percent O a. 7.8 percent
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