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Restex has a debt-equity ratio of 0.85 an equity cost of capital of 12%. and a debt cost of capital of 7%. Restex's corporate tax

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Restex has a debt-equity ratio of 0.85 an equity cost of capital of 12%. and a debt cost of capital of 7%. Restex's corporate tax rate is 25%, and its market capitalization is $220 million. a. If Restex's free cash flow is expected to be $10 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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