Suppose East Timber Company Ltd. is expected to have free cash flow in the coming year...

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Suppose East Timber Company Ltd. is expected to have free cash flow in the coming year of $5.25 million and its free cash flow is expected to grow at a rate of 4% per year thereafter. East Timber has an equity cost of capital of 10% and a debt cost of capital of 6%, and it pays a corporate tax rate of 25%. If East Timber maintains a debt-equity ratio of 0.50, what is the value of its interest tax shield? (To receive full credit, show the calculations below) Suppose East Timber Company Ltd. is expected to have free cash flow in the coming year of $5.25 million and its free cash flow is expected to grow at a rate of 4% per year thereafter. East Timber has an equity cost of capital of 10% and a debt cost of capital of 6%, and it pays a corporate tax rate of 25%. If East Timber maintains a debt-equity ratio of 0.50, what is the value of its interest tax shield? (To receive full credit, show the calculations below)