What is rollins component after-tax cost of debt

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Question: Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 7.9 percent coupon, paid semiannually, a current maturity of 20 years, and sell for the par value, $1,000. The firm's marginal tax rate is 38 percent. What is Rollins' component after-tax cost of debt?

Reference no: EM132074755

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