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Summit Builders has a market debt-equity ratio of 0.400.40, a corporate tax rate of 40 %40%, and pays 6 %6% interest on its debt. By
Summit Builders has a market debt-equity ratio of
0.400.40,
a corporate tax rate of
40 %40%,
and pays
6 %6%
interest on its debt. By what amount does the interest tax shield from its debt lower Summit's WACC?
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