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. 7.2%b. 12.0%c. 8.4%d. 3.6%e. 4.8%

Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.

Whom do progressive taxes assess? a. only a large percentage of high-income households b. only a large percentage of organizations c. a large percentage of high-income households and organizations d. a large percentage of low-income households e. a small percentage of high-income households