If its marginal tax rate is 40 what is lls after-tax cost

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Reference no: EM131970695

LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at par that would provide a similar yield to maturity.

If its marginal tax rate is 40%, what is LL's after-tax cost of debt? Round your answer to two decimal places.

Reference no: EM131970695

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