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Multiple Cholce Question Lester's has an EBIT of $ 5 2 , 0 0 0 and interest of $ 5 , 0 0 0 .

Multiple Cholce Question
Lester's has an EBIT of $52,000 and interest of $5,000. The tax rate on taxable income between $0 and $50,000 is 15 percent while it is 25 percent on taxable income of $50,001 to $75,000. What value should be assigned to TC in the WACC formula?
0.21, or 21 percent
0.25, or 25 percent
0.19, or 19 percent
0.20, or 20 percent
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