Question
After-Tax Cost of Debt LL Incorporated's currently outstanding 9% coupon bonds have a yield to maturity of 13%. LL believes it could issue new bonds
After-Tax Cost of Debt LL Incorporated's currently outstanding 9% coupon bonds have a yield to maturity of 13%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt? Round your answer to two decimal places.
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Real Estate Finance
Authors: Walt Huber, Levin P. Messick
5th Edition
0916772438, 9780916772437
