QUESTION 11 points Raymond Supply, a national aware chit is considering purchasing a maller chain Strom & Glazer Pasta (SGP) Raymond's malysts project that the merger will result in the following incremental free cash flows, tax shields, and horizon values Year 1 2 4 5: 53 Free cash flow Unlevered horizon value $3 57 75 Tax shield 1 1 2 3 Horizon value of tax shield 32 Assume that all cash flows occur at the end of the year, SGP is currently fitted with 30% debt ware of 10%. The equation would be made immediately, and if it is undertaken, SGP would retain itse S15 million of delt and issuemough new debt to test the 30% fargel level. The anterest rate would remain the same SOP pre-merger beta is 2.0, and its post-merge tax rate would be 34%. The risk-free rue in 8and the market risk remium is 4%. Uning the compressed adjusted present yake aposch, what is SGP value of tax shield? O S6L6 million 2553.40 million O $23.56 million 3876.96 million 561.96 million