Solution-Computing the after-tax cost of debt

Computing the after-tax cost of debt

Reference no: EM131115538

LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of debt?

Reference no: EM131115538

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Computing the after-tax cost of debt : LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of de..

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Computing the after-tax cost of debt

Reference no: EM131115538

Reference no: EM131115538

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