Sune Answer Question 23 5 points You are leading a team on a MBA deal. Suddenly your analyst has disappeared and you have the following unfinished spreadsheet. The acquirer and the target are assumed to have zero growth. Now it is up to you to finish this job. You also believe that the tax rate will be 20% when this merger closes, 50 you are using 20% as the corporate tax rate in this calculation Target Combined Acquirer 500 Sales 120 620 200 60 260 Operating Expenses Annual cost savings EBIT 40 300 60 217 EBIT(1-1) 240 48 77 Depreciation 40 20 722 30 40 72 10 Gross Plant & Equipment Change in Working Capital Free Cash Flow to Firm un m 240 23 72? Discount rate 8.00% 9% B% Firm Value 255.56 m 3000 1000 100 1100 Long term debt Equity value 2000 155.56 232 717 is