Aa Aa E, 6. Merger analysis Free cash flow to equity (FCFE) approach Consider the following acquisition data regarding Scorecard Corp. and Orators Telecom Inc. Scorecard Corp. is considering an acquisition of Orators Telecom Inc. Scorecard Corp. estimates that acquiring Orators will result in incremental value for the firm. The analysts involved in the deal have collected the following information from the projected financial statements of the target company Data collected (in millions of dollars) Year 1 Year 2 Year 3 28.5 EBIT 19.0 22.8 Interest expense 5.0 5.5 6.0 Debt 33.0 39.0 42.0 107.1 109.2 Total net operating capital Orators is a publicly traded company, and its market-determined pre-merger beta is 1.60. You also have the following information about the company and the projected statements