Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please explain how you find the numerator of the ratio. Really confused about that part. 3 Problem 11-6 Tax Rate (LG11-3) 2.5 points PDQ, Inc.,
Please explain how you find the numerator of the ratio. Really confused about that part.
3 Problem 11-6 Tax Rate (LG11-3) 2.5 points PDQ, Inc., expects EBIT to be approximately $12.1 million per year for the foreseeable future, and it has 50,000 20-year, 8 percent annual coupon bonds outstanding. (Use Table 11.1) Skipped What would the appropriate tax rate be for use in the calculation of the debt component of PDQ's WACC? (Round your answer to 2 decimal places.) Tax rate % eBook table 11.1 Corporate Tax Rates Taxable Income Tax Rate $o 15% 50,001 75,001 100,001 335,001 10,000,001 15,000,001 18,333,334 + $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 25 34 39 34 35 38 35 Taxable Income EBT = EBIT-Interest=$12.1 - $4 =$801 million million million s How to find ? numerator??? (34%) + ( 356 35) 4 million 4 millionStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started