Calculation of the debt component of PDQs WACC

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Reference no: EM131579225

PDQ, Inc., expects EBIT to be approximately $12.2 million per year for the foreseeable future, and it has 100,000 20-year, 6 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 PDQ’s WACC? (Round your answer to 2 decimal places.)

Reference no: EM131579225

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