Berlin is planning to offer to buy 100% of Hamburg and wants to understand what the proforma income statement might look like for the following 12 months. Current assumptions involve using 280MM of balance sheet cash, an issuance of debt of 2,100MM and an equity issuance of 1,400MM. Forecast interest rates are 5.5% for deal debt and 1.0% for cash. SG&A synergies are expected to be 28MM per annum. Deal goodwill is expected to be 960MM. The tax rate is 35%. Using the forecast information given below, what is consolidated tax expense?

A) 336.1

B) 605.4

C) 338.0

D) 309.0

Berlin Hamburg Sales 6,160.0 1,890.0 COGS 2,156.0 472.5 Gross profit 4,004.0 1,417.5 SG&A 2,464.0 850.5 Operating profit 1,540.0 567.0 Interest income 5.6 1.4 Interest expense 210.0 84.0 Profit before tax 1,335.6 484.4 Tax expense 280.5 87.2 Net income 1,055.1 397.2