4. Merger analysis - Corporate valuation model Valuation of the target company is a critical aspect of a merger transaction, Different methods are used in acquisition, valuations such as the corporate valuation method, the adjusted present value approach, the free cash flow to equity approach, and so on. Consider the case of Bldget Corp., which is a potential target for inty Corp, Bidget Corp, is expected to generate a free cash flow (PCP) of $152.00 million this year (FCF - $152.00 million), and the FCF is expected to grow at rate of 26.20% over the following two years (FC, and Fors). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FOF), Widget Corps weighted wernge cost of capital (WACC) 12.78% Use corporate valuation method to complete your analysis: . You would discount the Cs using the The hortion value or widget Corp. 's cash flows is The current total firm value of Nidget Corp. operations is in your valuation (Note: Round your intermediate calculations to two decimal places) (Note: Do not round your intermediate calculations If Bidget Corp. carries $1,190 million of debt before the merger, and the firm has no nonoperating assets or preferred stock, the value of equity of Midget Corp, to zity Corp, will be 5104.42 million $1,526,67 million $1,859.42 million $629.42 million