Calculation of the debt component of lilymac wacc

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Reference no: EM131894177

Suppose that LilyMac Photography expects EBIT to be approximately $70,000 per year for the foreseeable future, and that it has 300 10-year, 4 percent annual coupon bonds outstanding. (Use Table 11.1.)

What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac’s WACC?

Reference no: EM131894177

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