ILK has preferred stock selling for 95 percent of par that pays a 7 percent annual coupon. What would be ILk's component cost of preferred stock? (Round your answer to 2 decimal places.) Cost of preferred stock 1 % Suppose that LilyMac Photography expects EBIT to be approximately $46,000 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