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LAC Corp. has a free cash flow (FCF) this year of $ 6 million, and the FCF will grow at 4% a year. LAC has
LAC Corp. has a free cash flow (FCF) this year of $ 6 million, and the FCF will grow at 4% a year. LAC has both debt and equity, and LACs capital structure will remain stable. The pretax WACC of LAC is 10% and the after tax WACC is 9%.
What is the present value of LACs interest tax shield from the use of debt??
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