Determining the after-tax cost of debt


LL incorporated's currently outstanding 11% coupon bonds have yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of debt?

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Finance Basics: Determining the after-tax cost of debt
Reference No:- TGS053006

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