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Laurel, Inc., has debt outstanding with a coupon rate of 6.2% and a yield to maturity of 7.2%. Its tax rate is 38%. What
Laurel, Inc., has debt outstanding with a coupon rate of 6.2% and a yield to maturity of 7.2%. Its tax rate is 38%. What is Laurer'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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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Global Edition
1292437154, 978-1292437156
