PDQ, Inc., expects EBIT to be approximately $12.5 million per year for the foreseeable future, and it has 50,000 20-year, 10 percent annual coupon…

PDQ, Inc., expects EBIT to be approximately $12.5 million per year for the foreseeable future, and it has 50,000 20-year, 10 percent annual coupon bonds outstanding. What would the appropriate tax rate be for use in the calculation of the debt component of PDQ’s WACC?