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please help urgent! 23-6 FCFE Hiland Airways is planning to acquire Interstate Carriers. Interstate's cost of equity is 10%; it is financed 75% by common

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23-6 FCFE Hiland Airways is planning to acquire Interstate Carriers. Interstate's cost of equity is 10%; it is financed 75% by common equity and the remainder by debt at 5%. Interstate's tax rate is 30%. Below is a 4-year forecast prepared by Hiland regarding Interstate's future free cash flows, interest expense, and new debt. After Year 4, growth is expected to be 3.5%. The capital structure and cost of debt is not expected to change. NEL Year 1 Year 2 Year 3 Year 4 Free cash flows Interest expense $1,000,000 85,000 150,000 $1,140,000 92,500 160,000 $1,280,000 100,500 170,000 $1,420,000 109,000 180,000 New debt $1,700,000 What is the maximum amount that Hiland Airways should pay for Interstate Carriers

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