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An acquiring firm is analyzing the possible acquisition of a target firm. Both firms have no debt. The acquiring firm believes the acquisition of the

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An acquiring firm is analyzing the possible acquisition of a target firm. Both firms have no debt. The acquiring firm believes the acquisition of the target firm will increase its total after-tax annual cash flows by $4.0 million per year forever. The appropriate discount rate for the incremental cash flows is 9 percent. The current market value of the target firm is $85 million, and the current market value of the acquiring firm is $140 million. If the acquiring firm pays $130 million in cash to the target firm's shareholders, what is the value of the merged firm? Enter your answer in the box shown below as millions of dollars with 2 digits to the right of the decimal point

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