Question 29 (1 mark) APV Suppose that Rose Industries is considering the acquisition of another firm in its industry for $100 million. The acquisition is expected to increase Rose's unlevered free cash flow by $5 million the first year, and this contribution is expected to grow at a rate of 3% every year thereafter. Rose has an unlevered cost of equity of 8%p.a., a marginal tax rate of 40%, its cost of debt rD is 6% pa, and its levered cost of equity rE is 10% pa. Given that Rose issues new perpetual debt of $100 million initially to fund the acquisition, the total value ofthis acquisition using the APV method is closest to: A. $100 million B. $140 million C. $148 million D. $115 million E. $112 million