Question $2(25$ Marks$)$

The table below shows the projected cash flow statements for Ponerfield Corporation, which is being considered as a target for Delany Tech, a large conglomernte. The projected data art for the postmerger period, and all synergistic effects have been inclased. Porterfield currently uses $50$ percent debt, and if it were acquired, Delary Tech would keep the deber ratio at $50$ percene. Both Delany Tech and Porterfield have a $40$ percent murgiat foleral$-$plas$-$vate lax rate. Some of the cash flows generated by Porterfield's subsidiary after the merger were metained to finance asset replacements and growth, while some will be transferned to Delany. Tech to pay dividends on its stock, or for redeployment within the corporation. Ponterfield's available cash flow are expected to grow at a constiet $10$ perceet rate afler $2030$

Projected Postmerger Cash Flow Stutemerts for Porterfielf's Suhitimy as of December $31,($millioes of dollars$)$ met:

$\backslash$table$[[\backslash$table$[[$Details$],[$Retentions$]],\backslash$table$[[2006],[540]],2027,2028,2029,2030],[$Taxes$(40\%),,54\mathrm{.}0,57\mathrm{.}0,59\mathrm{.}0,$$$120],[$Interest$,88\mathrm{.}0,59\mathrm{.}0,$$$10\mathrm{.}0,,],[$Deprecistion$,58\mathrm{.}0,,,511\mathrm{.}0,811\mathrm{.}0],[,510\mathrm{.}0,58\mathrm{.}0,$$$9\mathrm{.}0.,590,$$$10\mathrm{.}0],[$Selling Question $2(25$ Marks$)$

The table below shows the projected cash flow statements for Ponerfield Corporation, which is being considered as a target for Delany Tech, a large conglomernte. The projected data art for the postmerger period, and all synergistic effects have been inclased. Porterfield currently uses $50$ percent debt, and if it were acquired, Delary Tech would keep the deber ratio at $50$ percene. Both Delany Tech and Porterfield have a $40$ percent murgiat foleral$-$plas$-$vate lax rate. Some of the cash flows generated by Porterfield's subsidiary after the merger were metained to finance asset replacements and growth, while some will be transferned to Delany. Tech to pay dividends on its stock, or for redeployment within the corporation. Ponterfield's available cash flow are expected to grow at a constiet $10$ perceet rate afler $2030$

Projected Postmerger Cash Flow Stutemerts for Porterfielf's Suhitimy as of December $31,($millioes of dollars$)$ met:

$\backslash$table$[[\backslash$table$[[$Details$],[$Retentions$]],\backslash$table$[[2006],[540]],2027,2028,2029,2030],[$Taxes$(40\%),,54\mathrm{.}0,57\mathrm{.}0,59\mathrm{.}0,$$$120],[$Interest$,88\mathrm{.}0,59\mathrm{.}0,$$$10\mathrm{.}0,,],[$Deprecistion$,58\mathrm{.}0,,,511\mathrm{.}0,811\mathrm{.}0],[,510\mathrm{.}0,58\mathrm{.}0,$$$9\mathrm{.}0.,590,$$$10\mathrm{.}0],[$Selling