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Expected operations of a firm after merger are shown in the table. All numbers in the table are shown as millions. Tax rate =40%. After

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Expected operations of a firm after merger are shown in the table. All numbers in the table are shown as millions. Tax rate =40%. After year 3 , firm will grow at a constant rate of 5%. Unlevered cost of equity is 8%. What is the horizon value of unlevered firm at t=3 ? $725 million $885 million $686 million \$712 million

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