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complete both parts to problem Question Ho Restex has a debl-equity ratio of 0.78, an equity cost of capital of 14%, and a debt cost

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Question Ho Restex has a debl-equity ratio of 0.78, an equity cost of capital of 14%, and a debt cost of capital of 9%. Restex's corporate tax rate is 38%, and its market capitalization is $242 million a. If Reste's free cash flow is expected to be $12 million one year from now and will grow at a constant rate, what expected future growth rate is consistent with Restex's current market value? b. Estimate the value of Restex's interest tax shield. a. If Rostex's free cash flow is expected to be $12 milion one year from now and will grow at a constant rate what expected future growth rate is consistent with Restex's current market value ? Rette's tree cash flow is expected to be $12 million in one year, the expected future growth rate is % (Round to two decimal places.) b. Estimate the value of Restex's interest tax shield. Interest tax shield value is $ million (Round to the nearest milion)

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