What is the value of acme interest tax shield

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Reference no: EM132028750

Acme Storage has a market capitalization of $6-4 million, and debt outstanding of $64 million. Acme plans to maintain this same debt-equity ratio in the future. The m pays an interest of 8 6% on its debt and has a corporate tax rate of 30% aif Acme's free cash flow is expected to be $10 24 milion next year and is expected to grow at a rate of 4% per year, what is Acre's WACC? b. What is the value of Acme's interest tax shield.

Reference no: EM132028750

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