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Restex has a debt-equity ratio of 0.56, an equity cost of capital of 18%, and a debt cost of capital of 14%. Restex's corporate tax

Restex has a debt-equity ratio of 0.56, an equity cost of capital of 18%, and a debt cost of capital of 14%. Restex's corporate tax rate is 21%, and its market capitalization is $272 million.

a. If Restex's free cash flow is expected to be $3 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?

If Restex's free cash flow is expected to be $3 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 million.)

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