Post Merger Information (In Millions): 2008 2009 2010 2011 2012 12.10 11.50 13.25 14.30 16.50 2.50 3.50 4.50 5.50 6.50 1.00 1.40 1.80 2.20 2.60 Free Cash Flows: Interest Expense: Int. Tax Shield Target Data: TRF RPM Beta rst Isu 7% 60% 1.2 14.20% 12.12% 309.66 Wd rd Tax Rate Growth Rate Tax Shield Horizon Value $45.03 40% 9% 40% 636 $ 31.60 Calculate Value of Operations of Target Firm: s 309.66 million s 341 20 milion