What would appropriate tax rate be for use in calculation

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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.

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

Reference no: EM13329043

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