Problem 11-6 Tax Rate (LG11-3) 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)

Table 11.1

taxable income tax rate

0 - $50,000 15%

50,001 - 75,000 25

75,001 - 100,000 34

100,001 - 335,000 39

335,001 - 10,000,000 34

10,000,001 - 15,000,000 35

15,000,001 - 18,333,333 38

18,333,334 + 35

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 %