PDQ, Inc., expects EBIT to be approximately $15.0 million per year for the foreseeable future, and it has 100,000 20-year, 6 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

%

table 11.1 Corporate Tax Rates Taxable Income Tax Rate $50,000 KY 25 34 39 34 35 38 35 $o 0 50,001 75,001 100,001 335,001 10,000,001 15,000,001 18,333.334+ 75,000 100,000 335,000 10,000,000 15,000,000 18,333.333