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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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