A firm is considering making an acquisition. Given the following data, what should the firm offer as a purchase price, if the acquiring firm has a five-year-ahead cash flow valuation horizon?

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Acquiring Firm Data: Long-Term Debt is $19,986 MM, Stockholder Equity is 27,884 MM, The current risk-free rate is 1.87%, The relevant market risk premium is 8.8%, Firm beta is 1.05 (Value Line), Tax rate = 35%, and the AAA bond yield is 5.47 % Potential Acquired Firm Data: Sales, 1998 Sales, 2003 Net Income, 2003 Depreciation, 2003 $17,000,000 30,000,000 2,250,000 750,000 Change in Net Working Capital = .1*Change in Sales Capital Expenditures = .15*Change in Sales