Laurel, Inc., has debt outstanding with a coupon rate of 5.80% and a yield to maturity...
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Laurel, Inc., has debt outstanding with a coupon rate of 5.80% and a yield to maturity of 6.81%. Its tax rate is 21%. What is Laurel's effective (after-tax) cost of debt? Note: Assume that the debt has annual coupons and that the firm will always be able to utilize its full interest tax shield. Laurel's effective after-tax cost of debt is decimal places.) %. (Round to two Laurel, Inc., has debt outstanding with a coupon rate of 5.80% and a yield to maturity of 6.81%. Its tax rate is 21%. What is Laurel's effective (after-tax) cost of debt? Note: Assume that the debt has annual coupons and that the firm will always be able to utilize its full interest tax shield. Laurel's effective after-tax cost of debt is decimal places.) %. (Round to two
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