Question: Question 2 (1 point) An acquiring tim is analyzing the possible acquisition of a target im. Both fimms have no debt. The acquiring firm believes
Question 2 (1 point) An acquiring tim is analyzing the possible acquisition of a target im. Both fimms have no debt. The acquiring firm believes the acquisition of the target im will increase its total after-tax annual cash flows by $3.9 million per year forever. The appropriate discount rate for the incremental cash flows is 9 percent. The current market value of the target firms $95 million, and the current market value of the acquiring firm is S160 million. If the acquiring term pays Sito million in cash to the target tirm's shareholders, what is the net prosent value of the acquisition? Enter your answer in the box shown below us millions of dollars with 2 digits to the right of the decimal point Your
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