Question 15 5 points Save Answer You are leading a team on a M&A 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 coses, so you are using 20% as the corporate tax rate in this calculation. Combined Acquirer Target 500 120 Sales 620 Operating Expenses 200 60 260 Annual cost savings 30 300 217 240 ??? 8 80 81 40 272 EBIT EBIT(1-0) Depreciation Gross Plant & Equipment Change in Working Capital Free Cash Flow to Firm 30 227 10 in 272 240 23 722 Discount rate 8.00% 996 896 Firm Value 3000 255.56 777 1000 100 Long term debt Equity value 1100 737 2000 155.56 217 5 200 1225 10 5 ??? Change in Working Capital Free Cash Flow to Firm 240 23 727 Discount rate 8.00% 9% 896 Firm Value 3000 255.56 ??? 1000 100 1100 Long term debt Equity value 2000 155.56 ?3? 217 is 260 722 is 232 The synergy of this merger is The maximum offer you can make is A Moving to another question will save this response. Questio