profitable, so it has paid an average of only $20\%$ in taxes during the last several years. In addition, it uses little debt, having a debt ratio of just $25\%.$ If the acquisition were made, Goldilocks would operate Black$-$Wolf as a separate, wholly owned subsidiary. Goldilocks would pay taxes on a consolidated basis, and the tax rate would therefore increase to $35\%.$ Goldilocks also would increase the debt capitalization in the Black$-$Wolf subsidiary to $40\%$ of assets, which would increase its beta to $1\mathrm{.}47.$ Goldilocks's acquisition department estimates that Black$-$Wolf, if acquired, would produce the following cash flows to Goldilocks's shareholders $($in millions of dollars$)$:

$\backslash$table$[[$year$,$Cash Flows$],[1,$$$1\mathrm{.}30$