Also answer:

B) What is the value of Acmes Tax Shield?

7. (3 points) Acme Storage has a market capitalization of $200 million and debt outstanding of $90 million Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest rate of 6% on its debt and has a corporate tax rate of 40%. If Acme's free cash flow is expected to be $15 million next year and is expected to grow at a rate of 2% per year, what is Acme's WACC? a