10 points QUESTION 6 b. Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%, and it is in the 35% corporate tax bracket. If Flagstaff currently maintains a 8 debt to equity ratio, then calculate the value of Flagstaff's interest tax shield. 35 $19.02 million $19.59 million puc interest tax shield)= interest expense & taxa dettu -0.8 ware: 12 x7%+ ing #70510 FF = $8m $5.36 million $93,07 million