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Question 21 (1 point) Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual
Question 21 (1 point) Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual cash flows by $92,930 indefinitely. The current market value of Firm I is $4,130,290 whereas that of Firm A is $6,779,910. The appropriate discount rate for evaluating the incremental cash flows is 9.30%. If Firm A offers 29.30% of its stock to Firm T's shareholders, what will be the NPV of this acquisition to Firm A? $1,599,068 $1,640,069 $1,681,071 $1,722,073 $1,763,074
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