Acme Storage has a market capitalization of $ 214 million, and debt outstanding of$ 220

million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest of 8.9%

on its debt and has a corporate tax rate of 35%.

a. If Acme's free cash flow is expected to be

$30.38 million next year and is expected to grow at a rate of 4%

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

$ 30.38 million next year and is expected to grow at a rate of 4 %

per year, what is Acme's WACC?The WACC is 11%.

(Round to the nearest integer.)

b. What is the value of Acme's interest tax shield?

The value of Acme's interest tax shield is

$ million. (Round to two decimal places.)