Question
QUESTION 33 Rollins Corporation's bonds have a 12 percent coupon, paid semiannually. It matures in 20 years, and its current market price is $1,000. The
QUESTION 33
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Rollins Corporation's bonds have a 12 percent coupon, paid semiannually. It matures in 20 years, and its current market price is $1,000. The maturity value is $1,000. The firm's marginal tax rate is 40 percent. Which of the following is Rollins' after-tax cost of debt?
A. 6.8 percent
B. 7.2 percent
C. 5.3 percent
D. 9.5 percent
E. 8.4 percent
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Asset Management And Institutional Investors
Authors: Ignazio Basile, Pierpaolo Ferrari
1st Edition
331932795X,3319327968
