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Rollins Corporation is estimating its WACC. Its target capital structure is 40 percent debt and 60 percent common equity. Its bonds have a 12 percent
Rollins Corporation is estimating its WACC. Its target capital structure is 40 percent debt 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. Rollins' beta is 1.2, the risk-free rate is 5 percent, and the market risk premium is 8 percent. The firm's marginal tax rate is 25 percent.
What is Rollins' WACC?
Group of answer choices
14.98%
12.36%
13.75%
10.07%
Please help need asap!!
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