Great Lakes Inc. is considering purchasing Eastern Physicians, which has $20 mil. of debt at a cost of 8%. Great Lakes' analysts project that the merger will result in free operating cash flows of $2 mil. in Year 1, $4 mil. in Year 2, $5 mil. in Year 3, and $117 mil. in Year 4. (Year 4 cash flow includes a terminal value of $107 mil.) The acquisition would be made immediately if it is undertaken. Eastern's premerger 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%. Eastern has a target of 20% debt for its target capital structure.

What is the current value of Eastern's equity?