Question
Laurel, Inc., has debt outstanding with a coupon rate of 6.1% and a yield to maturity of 7.1%. Its tax rate is 35%. What is
Laurel, Inc., has debt outstanding with a coupon rate of 6.1% and a yield to maturity of 7.1%. Its tax rate is 35%. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield. The effective after-tax cost of debt is ___%. (Round to four decimal places.)
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Money Management And Financial Budgeting 2 Books In 1 A Beginners Guide On Managing Bad Credit Debt Savings And Personal Finance
Authors: Robert Anderson
1st Edition
1386959006, 978-1386959007
