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Summit Builders has a market debt-equity ratio of 0.40, a corporate tax rate of 35%, and pays 7% interest on its debt. By what amount
Summit Builders has a market debt-equity ratio of
0.40,
a corporate tax rate of
35%,
and pays
7%
interest on its debt. By what amount does the interest tax shield from its debt lower Summit's WACC?
WACC is lowered by
%.
(Round to two decimal places.)
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