VI. Rollins Corporation is estimating its WACC. The long-term debt consists of 50,000 bonds, each of which has a par value of $1,000, carries an annual coupon rate of 7.2% paid semiannually, and matures in 15 years. The bonds are selling at $1,086.52. Rollins has 18 million shares of common stock outstanding selling at $32 per share. Rollins' beta is 1.2, the risk-free rate is 4 percent, and the market risk premium is 8 percent. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $32.00 per share, and has a growth rate of 6 percent. The firm's marginal tax rate is 40 percent. (1) What is Rollins' after- tax cost of debt? (2) What is Rollins' return on equity using CAPM model? (3) What is Rollins return on equity using dividend growth model? (4) What is Rollins' WACC? (20 points)