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brownfish256Lv1
29 Sep 2019
LL Incorporated's currently outstanding 6% coupon bonds have a yield to maturity of 15.67%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 27.00%, what is LL's after-tax cost of debt?
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LL Incorporated's currently outstanding 6% coupon bonds have a yield to maturity of 15.67%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 27.00%, what is LL's after-tax cost of debt?
SHOW ALL WORK AND EXPLAIN ANSWER
Lelia LubowitzLv2
29 Sep 2019