M Inbox (2,440) - malshend@asu X ASU Quiz: QUIZ 7 - CASH, A/R, ADA X Homework Help - Q&A from Orx ASU Problem Set 2 - Due March 26 x PS2_due_Mar26 (1).pdf + M CFile /Users/mohammadshendi/Downloads/PS2_due_Mar26%20(1).pdf PS2_due_Mar26 (1).pdf 5/5 FIN 361 Spring 20 Problem Set 2 Question 5 [10 points] Burger Inc. has a market capitalization of $100 million, and debt outstanding of $40 million. Burger Inc. plans to maintain this same debt-equity ratio in the future. The firm pays an interest of 7.5% on its debt and has a corporate tax rate of 21%. a) If Burger Inc.'s free cash flow is expected to be $7.00 million next year and is expected to grow at a rate of 3% per year, what is Burger Inc.'s WACC? b) What is the value of Burger Inc.'s interest tax shield? Note: Show your work. +