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

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

Tax Rate Suppose that LilyMac Photography
expects EBIT to be approximately $200,000 per year for the foreseeable future, and that it
has 1,000 10-year, 9 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?



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