Question
PDQ, Inc., expects EBIT to be approximately $14.8 million per year for the foreseeable future, and it has 100,000 20-year, 8 percent annual coupon bonds
PDQ, Inc., expects EBIT to be approximately $14.8 million per year for the foreseeable future, and it has 100,000 20-year, 8 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.)
Tax rate %
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
978-1259024962
