Calculation of the debt component of pdq wacc

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Reference no: EM131473413

PDQ, Inc., expects EBIT to be approximately $13.4 million per year for the foreseeable future, and it has 50,000 20-year, 10 percent annual coupon bonds outstanding.

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

Reference no: EM131473413

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