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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 $3.6 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 $150 million. What is the value of the synergic benefit from the acquisition of the target firm? Enter your answer in the box shown below as millions of dollars with 2 digits to the right of the decimal point Your

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