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Acme Storage has a market capitalization of $ 2 2 5 million and debt outstanding of $ 1 3 5 million. Acme plans to maintain
Acme Storage has a market capitalization of $ million and debt outstanding of $ million. Acme plans to maintain this same debtequity ratio in the future. The firm pays an interest of on its debt and has a corporate tax rate of
a If Acme's free cash flow is expected to be $ million next year and is expected to grow at a rate of per year, what is Acme's WACC?
b What is the value of Acme's interest tax shield?
a If Acme's free cash flow is expected to be $ million next year and is expected to grow at a rate of per year, what is Acme's WACC?
The WACC is
Round to the nearest integer.
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