#3 Al-Wahid Industries Ltd desired to acquire 100% shares in AL-Maalik ltd. Both companies operate in the same industry and have similar gearing levels of 17%. Cost of equity of Al-Wahid industries Ltd is 21%. Al-Wahid Industries Ltd has estimated that the takeover will increase its annual cashflows over the next few years by the following amounts: itivity: Internal Year 2021 2022 2023 2024 Rs in Million After tax (But before interest cashflows) 29.4 37.2 40.8 60.7 Al Maalik has 8% irredeemable debentures of Rs. 77 million trading at par. Tax rate is 29%. If Al-Wahid ltd makes a bid of Rs 195 million for the entire share capital of Al Maalik Ltd, it would increase the shareholder's wealth by (Hint: Use free cash flow to equity (FCFE) of the target company (i-e cashflows after interest)] Year PV factor at 21% A Rs. 21.81 million B Rs. 19.61 million 0 1 0.826 2 0.683 3 0.564 4 0.467