appy Times, Incorporated, wants to expand its party stores into the Southeast. In order to establish an immediate presence in the area, the company is considering the purchase of the privately held Joes Party Supply. Happy Times currently has debt outstanding with a market value of $230 million and a YTM of 7.1 percent. The companys market capitalization is $370 million and the required return on equity is 13 percent. Joes currently has debt outstanding with a market value of $35 million. The EBIT for Joes next year is projected to be $15 million. EBIT is expected to grow at 9 percent per year for the next five years before slowing to 2 percent in perpetuity. Net working capital, capital