2. An acquiring firm is analyzing the possible acquisition of a target firm. Both firms have no debt period the acquiring firm believes the acquisition of the target firm will increase its total after-tax annual cashflows by $4.2 million per year forever. The appropriate discount rate for the incremental cash flow is 12%. The current market value of the target firm is $75 million, and the current market value of the acquiring phone is $140 million. If the acquiring firm pays 35% of its stock to the target firm's shareholders, what is the value of the merged firm