What is luggets pre-tax cost of debt

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Reference no: EM131324440

Lugget Corp. has one bond issue outstanding with an annual coupon rate of 3.4%, a face value of $1,000 and a price of $1,034.12, which matures in 10 years. The company's tax rate is 31%.

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What is Lugget's pre-tax cost of debt?

Reference no: EM131324440

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What is luggets pre-tax cost of debt : Lugget Corp. has one bond issue outstanding with an annual coupon rate of 3.4%, a face value of $1,000 and a price of $1,034.12, which matures in 10 years. The company's tax rate is 31%. What is Lugget's pre-tax cost of debt?

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