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Calculate the ll after-tax cost of debt

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Reference no: EM132734285

Problem - LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8.4%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, calculate the LL's after-tax cost of debt?

Reference no: EM132734285

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