PDQ, Inc., expects EBIT to be approximately $14.1 million per year for the foreseeable future, and it has 100,000 20-year, 7 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 PDQs WACC? (Round your answer to 2 decimal places.)

table 11.1 Corporate Tax Rates Tax Rate Taxable income 15% 50,000 50,001 75,000 25 34 75,001 100,000 335,000 100,001 335,001. 10,000,000 34 10,000,001 15,000,000 38 18.333.333 15,000,001 18,333,334