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After-tax cost of debt

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After-Tax Cost of Debt %

LL Incorporated's currently outstanding 9% coupon bonds have a yield to maturity of 6.2%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is LL's after-tax cost of debt? Round your answer to two decimal places.

Reference no: EM132783211

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