Use the following information to answer next three questions. Rollins Corporation is examining its cost of capital. The company has two sources of long-term fund: long-term debt (bond) and common equity. Debt information: Its bonds have a 5 percent coupon, paid annually, with a maturity of 15 years, and are currently selling for $1,019. Par value is $1,000. The corporate tax rate is 35%. Equity information: Rollins' beta is 1.05, the risk-free rate is 3 percent, and the market rate of return is 7 percent. Rollins is a constant dividend growth firm which is expected to pay a dividend of $1.2, sells for $28.00 per share, and has a dividend growth rate of 4 percent 6. What is Rollins' after-tax cost of debt? 3.79% 3.13% 4.55% D) 4.95% A) C) B) 7. What is Rollins' cost of equity capital using SML approach and dividend growth model? 7.2%, 8.3% 8.2%, 8.6% B) 7.2%, 8.6% D) 8.2%, 8.4% 8. What is Rollins' weighted average cost of capital (WACC) given that the capital structure of Rollins's is 45% debt and 55% equity? (Use cost of equity from dividend growth model) A) 6.84% C) 5.24% B) 6.37% D 5.97%