Problem 11-6 Tax Rate (LG11-3) PDQ, Inc., expects EBIT to be approximately $14.3 million per...
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Problem 11-6 Tax Rate (LG11-3) PDQ, Inc., expects EBIT to be approximately $14.3 million per year for the foreseeable future, and it has 50,000 20-year, 10 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 PDQ's WACC? (Round your answer to 2 decimal places.) Tax rate % table 11.1 Corporate Tax Rates Taxable income Tax Rate $0 15% 25 50,001 75,001 $50,000 75,000 100,000 335,000 10,000,000 34 100,001 39 34 335,001 10,000,001 15,000,000 18,333,333 15,000,001 18,333,334 + 35 38 35
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