Question 18 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 equity using the security market line (SML) approach (approximately)? 8.25% - 11.25% o 18.75% o 17.25% o 11.31%