Problem 11-5 Tax Rate (LG11-3) Suppose that LilyMac Photography expects EBIT to be approximately $650,000 per year for the foreseeable future, and that it has 2,000 10-year, 10 percent annual coupon bonds outstanding. (Use Table 111.) What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac's WACC Tax rate Reference links 11.1 The WACC Formula