Question: PDQ, Inc. expects EBIT to be approximately $11 million per year for the foreseeable future, and that they have 25,000 20-year, 8 percent annual coupon

PDQ, Inc. expects EBIT to be approximately $11 million per year for the foreseeable future, and that they have 25,000 20-year, 8 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?

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