Eades Logistics Corp., which is considering the acquisition of Len Corp., estimates that acquiring Len will result incremental value for the firm. The analysts involved in the deal have collected the following information from i projected financial statements of the target company: Len Corp. is a publicly traded company, and its market-determined pre-merger beta is 1.00. You also have the following information about the company and the projected statements: Len currently has a $18.00 million market value of equity and $11.70 million in debt. The risk-free rate is 4%, there is a 6.10% market risk premium, and the Capital Asset Pricing Model produce pre-merger required rate of return on equity r_SL of 10.10%. Len's cost of debt is 6.00% at a tax rate of 30%. The projections assume that the company will have a post-horizon growth rate of 5.50%. Current total net operating capital is $104.0, and the sum of existing debt and debt required to maintain a constant capital structure at the time of acquisition is $31 million. The firm does not have any non-operating assets such as marketable securities. Given this information, use the adjusted present value (APV) approach to calculate the following values involve merger analysis: Thus, the total value of Len's equity is. Eades Logistics Corp., which is considering the acquisition of Len Corp., estimates that acquiring Len will result incremental value for the firm. The analysts involved in the deal have collected the following information from i projected financial statements of the target company: Len Corp. is a publicly traded company, and its market-determined pre-merger beta is 1.00. You also have the following information about the company and the projected statements: Len currently has a $18.00 million market value of equity and $11.70 million in debt. The risk-free rate is 4%, there is a 6.10% market risk premium, and the Capital Asset Pricing Model produce pre-merger required rate of return on equity r_SL of 10.10%. Len's cost of debt is 6.00% at a tax rate of 30%. The projections assume that the company will have a post-horizon growth rate of 5.50%. Current total net operating capital is $104.0, and the sum of existing debt and debt required to maintain a constant capital structure at the time of acquisition is $31 million. The firm does not have any non-operating assets such as marketable securities. Given this information, use the adjusted present value (APV) approach to calculate the following values involve merger analysis: Thus, the total value of Len's equity is
