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Question 6 (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 6 (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 $105,800 indefinitely. The current market value of Firm T is $4,971,400 whereas that of Firm A is $8,160,600. The appropriate discount rate for evaluating the incremental cash flows is 10.02%. If Firm A offers 31.70% of its stock to Firm T's shareholders, what will be the NPV of this acquisition to Firm A? $1,414,998 $1,453,241 $1,491,484 $1,529,728 $1,567,971
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