Post Merger Information (In Millions): 2008 2009 2010 2011 2012 Free Cash Flows: 12.10 11.50 13.25 14.30 16.50 Interest Expense: 2.50 3.50 4.50 5.50 6.50 Int. Tax Shield 1.00 1.40 1.80 2.20 2.60 Target Data: rRF 7% wd 40% RPM 6.0% rd 9% Beta 1.2 Tax Rate 40% rsL 14.20% Growth Rate 6% rsU 12.12% Tax Shield Horizon Value $45.03 VUL 309.66 VTS $31.60 Calculate Value of Operations of Target Firm:

$ 309.66 million

$ 341.20 million

$ 354.69 million

$ 386.29 million