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NewAge Inc. expects to have free cash flow in the coming year of $ 1 . 7 5 million, and its free cash flow is

NewAge Inc. expects to have free cash flow in the coming year of $1.75 million, and its free cash flow is expected to grow at a rate of 3.5% per year thereafter. The firm also has an equity cost of capital of 12% and a debt cost of capital of 7%, and it pays a corporate tax rate of 21%. If NewAge Inc. maintains a debt-equity ratio of 30%, what is the value of its interest tax shield?
Note: Please show your work to receive full credit
A. $1.1533 million
B. $1.7630 million
C. $0.2343 million
D. $2.0878 million
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