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Round the answer to part A to the nearest integer but for part B round the answer to TWO DECIMAL PLACES!!!! Homework: Homework 7 Question
Round the answer to part A to the nearest integer but for part B round the answer to TWO DECIMAL PLACES!!!!
Homework: Homework 7 Question 6, B15-15 (book/static) Part 1 of 2 HW Score: 50%, 4 of 8 points O Points: 0 of 1 Save Acme Storage has a market capitalization of $100 million, and debt outstanding of $40 million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest of 7.5% on its debt and has a corporate tax rate of 21%. a. If Acme's free cash flow is expected to be $7.00 million next year and is expected to grow at a rate of 3% per year, what is Acme's WACC? b. What is the value of Acme's interest tax shield? a. If Acme's free cash flow is expected to be $7.00 million next year and is expected to grow at a rate of 3% per year, what is Acme's WACC? The WACC is %. (Round to the nearest integer.)Step by Step Solution
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