LAC Corp. has a free cash flow (FCF) this year of $ 6 million, and the FCF

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LAC Corp. has a free cash flow (FCF) this year of $ 6 million, and the FCF will grow at 4% a year. LAC has both debt and equity, and LAC's capital structure will remain stable. The pretax WACC of LAC is 10% and the after tax WACC is 9%.

What is the present value of LAC's interest tax shield from the use of debt?

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Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Jun 13, 2023 05:40 AM

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LAC Corp. has a free cash flow (FCF) this year of $ 6 million, and the FCF

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FCF0 Free Cash Flow 6000000 FCF1 Expected Cash Flow FCFO ... View the full answer

Fundamentals Of Corporate Finance

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