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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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