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Firms A and B are competitors. Both have similar assets and business risks and are all - equity firms. Firm A has after - tax
Firms A and are competitors. Both have similar assets and business risks and are allequity firms. Firm A has aftertax cash flow of $ per year forever and firm has aftertax cash flow of $ per year forever. If the two firms merge, the perpetual aftertax cash flow will be $ If the appropriate discount rate is what is the MOST B will pay for A
a $
b $
c $
d $
e $
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