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15. Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow

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15. Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%, and it is in the 20% corporate tax bracket. If Flagstaff currently maintains a .5 debt to equity ratio, then the value of Flagstaff's interest tax shield is closest to: A) $5 million B) $10 million C) $18 million D) $24 million

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