You are evaluating a potential takeover target. A junior analyst on your team provided the target FCFF forecast below.
In addition, you have information about the target's debt, interest expenses, tax rate, and unlevered cost of equity.
Estimate the target's firm value based on its free cash flows and interest tax shield
Estimate the target's total equity value
Year	0	1	2	3	4	5	6
FCFF	8.0	7.4	9.9	12.1	13.5
						6%	FCFF growth rate, indefinitely
Interest expense	2.0	2.4	2.6	2.9	3.2
						2%	Int. exp. growth rate, indefinitely
32%	Tax rate
12.0%	rE,U
40.0	Pre-merger debt