A PE firm has decided to take on $25 million in debt to finance the acquisition of a unlevered target company. The PE firm plans to repay \$2 million every year for the next 5 years. After Year 5 debt is expected to remain constant indefinitely. The cost of debt is 10% and the applicable tax rate is 25%. The table below shows the expected debt outstanding and interest expense (based on debt outstanding at the end of last year) [in millions]: If the unlevered value of the target company is $40 million, what is the maximum that the PE firm can offer for the target company (after taking on $25 million debt]? $45 million $40 million $46.25 million $43.75 million $44.35 million