Calculation of the debt component

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Reference no: EM131892018

Tax Rate

Suppose that LilyMac Photography expects EBIT to be approximately $43,000 per year for the foreseeable future, and that it has 500 10-year, 5 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: EM131892018

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