Suppose that LilyMac Photography expects EBIT to be approximately $70,000 per year for the foreseeable future, and that it has 300 10-year, 4 percent annual coupon bonds outstanding. What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac's WACC? (Use Table 11.1)

table 11.1 CORPORATE TAX RATES 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