Suppose that lilymac photography expects ebit to be, Ask an Expert

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Suppose that LilyMac Photography expects EBIT to be approximately $200,000 per year for the foreseeable future, and that it has 1,000 10-years, 9 percent annual coupon bonds outstanding.

Requirement:

What would the appropriate tax rate be for use in the calculation of the debt component of LilyMac's WACC? Please explain in detail and also provide step by step solution.

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Category:- Basic Finance
Reference No.:- M91146566

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