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QUESTION 7 Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by

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QUESTION 7 Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by 51,482,890.94 indefinitely The current market value of Teller is $22,964.432 and that of Pennis 566,336,456. The appropriate discount rate for the incremental cash flow is 15.299. Peninis trying to decide whether it should offer 39% of its stock or $30,827,685 in cash to Teller's shareholders What is the NPV of the stock offer? HINT: Subtract the equity cost (as computed in the previous problems from the value of the combined firm NOTE: Enter the number rounding to four DECIMALS. If your decimal answer is 0.034576, your answer must be 0.0346. DO NOT USE the sign

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