Tax rate be for use in the calculation of the debt component

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Reference no: EM131604066

Suppose that LilyMac Photography expects EBIT to be approximately $500,000 per year for the foreseeable future, and that it has 2,000 10-year, 8 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?

Tax rate %

Reference no: EM131604066

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