estion 15 Question 15 of 25 8 points Save Answ Brau Auto, a national auto parts chain, is considering purchasing a smaller chain, South Georgia Parts (SGP). Brau's analysts project that the merger will result in the following incremental free cash flows, tax shields, and horizon values: Year 1 2 3 Free cash flow $1.5 $4.5 Unlevered horizon value Tax shield 4 $4.5 $10.5 112.5 1.5 1.5 3 4.5 Horizon value of tax shield 48 Assume that all cash flows occur at the end of the year. SGP is currently financed with 30% debt at a rate of 10%. The acquisition would be made immediately, and if it is undertaken, SGP would retain its current $22.5 million of debt and issue enough new debt to continue at the 30% target level. The interest rate would remain the same. SGP's pre-merger beta is 2.0, and its post-merger tax rate would be 34%. The risk-free rate is 8% and the market risk premium is 4%. What is the value of SGP to Brau? Exam 3 Formula Sheet.pdf Excel.xlsx OA. $64.56 million OB. $92.95 million OC. $61.96 million. OD. $84.65 million