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Question 24 (3 points) An acquiring firm is analyzing the possible acquisition of a target firm. Both firms have no debt. The acquiring firm believes

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Question 24 (3 points) An acquiring firm is analyzing the possible acquisition of a target firm. Both firms have no debt. The acquiring firm believes the acquisition of the target firm will increase its total after-tax annual cash flows by $4.1 million per year forever. The appropriate discount rate for the incremental cash flows is 9 percent. The current market value of the target firm is $85 million, and the current market value of the acquiring firm is $160 million. What is the value of the target firm to the acquiring firm? Enter your answer in the box shown below as millions of dollars with 2 digits to the right of the decimal point. Your

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