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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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
