Question 17 5 pts The following will be used to answer the next question Debt: 15,000 10% coupon bonds outstanding, 30 years to maturity, selling for 106 (bonds have a $1000 par value with semiannual interest payments) Preferred Stock: 20,000 shares of 7% preferred stock outstanding with a par value of $100 and currently selling for $128 per share Common Stock: 300,000 shares outstanding selling for $80 per share, the beta is 1.5, the risk-free rate is 6% and the market risk premium is 7.5%. The company's tax rate is 20 percent. (Numbers in parentheses are negative) What is Rollins' after-tax cost of debt (approximately)? o 5.40% o 5.64% 9.40% 04.50% o 7.52%