Question
LL Incorporateds currently outstanding 11% coupon bonds have a yield to maturity of8%. LL believes it could issue new bonds at par that would provide
LL Incorporateds currently outstanding 11% coupon bonds have a yield to maturity of8%. LL believes it could issue new bonds at par that would provide a similar yield tomaturity. If its marginal tax rate is 35%, what is LLs after-tax cost of debt?
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
