Question
Suppose that LilyMac Photography expects EBIT to be approximately $500,000 per year for the foreseeable future, and that it has 2,000 10-year, 8 percent annual
| Suppose that LilyMac Photography expects EBIT to be approximately $500,000 per year for the foreseeable future, and that it has 2,000 10-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 LilyMacs WACC? |
| Tax rate | % |
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
