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Assuming that the furniture division contributes $900 million to the debt capacity of MLO, calculate the value of the furniture division as part of MLO.

Assuming that the furniture division contributes $900 million to the debt capacity of MLO, calculate the value of the furniture division as part of MLO. What is the value of the operating improvements that the investors expect to realize after the acquisition and what is the value of the incremental interest tax shields? Motivate your approach and show all your calculations. (10 points)

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