Question
Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 6.8 % Its tax rate is 35
Laurel, Inc., has debt outstanding with a coupon rate of
5.9 %
and a yield to maturity of
6.8 %
Its tax rate is
35 %
What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons.
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
12th Edition
1439044473, 978-1439044476
