A group of investors is intent on purchasing a publicly traded company and wants to estimate the highest price they can reasonably

justify paying. The target company's equity beta is $1\mathrm{.}20$ and its debt$-$to$-$firm value ratio, measured using market values, is $60$ percent.

The investors plan to improve the target's cash flows and sell it for $12$ times free cash flow in year five. Projected free cash flows and

selling price are as follows.

To finance the purchase, the investors have negotiated a $$440$ million, five$-$year loan at $8$ percent interest to be repaid in five equal

payments at the end of each year, plus interest on the declining balance. This will be the only interest$-$bearing debt outstanding after

the acquisition.

b$.$ Estimate the target$$s all$-$equity present value.

Note: Enter your answer in millions rounded to $2$ decimal places.

c$.$ Estimate the present value of the interest tax shields on the acquisition debt discounted at KA $.$