LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 5.4%. LL believes it could issue new

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answerhappygod
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LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 5.4%. LL believes it could issue new

Post by answerhappygod »

LL Incorporated's currently outstanding 8% coupon bonds have a
yield to maturity of 5.4%. LL believes it could issue new bonds at
par that would provide a similar yield to maturity. If its marginal
tax rate is 25%, what is LL's after-tax cost of debt? Round your
answer to two decimal places.
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