Restex has a debt-equity ratio of 0.66, an equity cost of capital of 12 %, and a debt cost of capital of 7 %. Restex's corporate tax rate is 30 %, and its market capitalization is $ 175 million.

a. If Restex's free cash flow is expected to be $ 7 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.