LL Incorporated's currently outstanding 10% coupon bonds have a yield to maturity of 14%. LL believes it
Fantastic news! We've Found the answer you've been seeking!
Question:
LL Incorporated's currently outstanding 10% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is LL's after-tax cost of debt? Round your answer to two decimal places.
Posted Date: