Rollins Corporation is constructing its marginal cost of capital (MCC) schedule. Its target capital structure is 30 percent debt, 20 percent preferred stock, and 50 percent common equity. Its bonds have a 12 percent coupon rate of interest, semiannual interest payments, a current maturity of 20 years, and a market value equal to their par value of $1,000. The firm's marginal tax rate is 40 percent. What is Rollins' after-tax cost of debt?
A. 8.4%
B. 7.2%
C. 4.8%
D. 12.0%
E. 3.6%
Answer: B
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In a dynamic model of money, if money supply and trend output is constant over time
A. nominal supply of money will increase, while nominal demand for money will be constant. B. nominal supply of money will decrease, while nominal demand for money will be constant. C. nominal supply of money will be constant, while nominal demand for money will decrease. D. both the nominal supply of money and nominal demand for money will be constant.
Which of the following is not a method for devising an effective omnichannel strategy?
A. allowing returns of merchandise to any channel regardless of channel of purchase B. advertising in-store that additional sizes and colors are available online C. having a consistent image across all channels D. splitting buying responsibilities up at the corporate office to specialize in either stores or e-commerce to better understand the different customers' buying behaviors E. having the same pricing strategies and promotions for all channels
The value of ?2 varies between 0 and 1
Indicate whether the statement is true or false
Customer satisfaction is defined as ________.
A. the number of purchases in a defined period of time B. retaining satisfied and loyal profitable customers and channels C. increasing the likelihood that a customer becomes a buzz marketer D. the degree to which an individual will resist switching from one offering to another E. the level at which the offering meets or exceeds a customer's expectations