just need the free cash flow. will drop a like

Your firm wants to buy AZ Corporation. Your assistant has made the following cash flow forecast (in millions): Year 1 2 3 Sales $1,200 $1,200 $1,400 Net Operating Profit after taxes $100 $105 $111 Depreciation $10 $25 $30 Current value of Net fixed assets=$110 Current value of Net working capital=$70 As percent of sales, net fixed assets will increase by 11% As percent of sales, net working capital will increase by 7% Beginning in year 4, AZ's free cash flows will be $70 million per year forever (perpetuity). AZ has S50 million in long-term debt and there are one million shares outstanding. AZ'S WACC is 9% 1. Calculate AZ's free cash flows for years 1-3, including the horizon value. 2. What price per share should you offer AZ's shareholders, assuming no synergies? 3. Now suppose the merged firms will save $10 million before tax per year in costs for the next five years. What is the maximum price per share you can offer without destroying value, assuming a tax rate of 21% for your firm