What is Rollins' cost of common stock using the bond-yield-plus-risk-premium approach?
A) 13.6%
B) 14.1%
C) 16.0%
D) 16.6%
E) 16.9%

Name: What is Rollins' cost of common stock using the bond-yield-plus-risk-premium approach? A) 13.6% B) 14.1% C) 16.0% D) 16.6% E) 16.9%
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Question

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The bond-yield-plus-risk-premium approach estimates the cost of common stock by adding a risk premium to the yield on the company's long-term debt. The correct choice is based on the given options and typical risk premiums.

What Is Rollins' Cost of Common Stock Using the Bond-Yield-Plus-Risk-Premium