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Restex has a debt-equity ratio of 0.72, an equity cost of capital of 13%, and a debt cost of capital of 10%. Restex's corporate tax
Restex has a debt-equity ratio of 0.72, an equity cost of capital of 13%, and a debt cost of capital of 10%. Restex's corporate tax rate is 35%, and its market capitalization is $217 million. a. If Restex's free cash flow is expected to be $6 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
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