ClearSky Climate maintains a debt-equity ratio of 0.75, has an equity cost of capital of 12%, and a debt cost of capital of 5%. ClearSky Climates corporate tax rate is 35%, and its market capitalization is $180 million.

Required:

1. If ClearSky Climates free cash flow is expected to be $9.5 million in one year, what constant expected future growth rate is consistent with the firms current market value?
2. Estimate the value of ClearSky Climates interest tax shield.