Rapld Route is a publicly traded company, and its market-determined pre-merger beta is 1.60, You also have the following information about the company and the projected statements. - Rapid Route currently has an $18.00 million market value of equity and $11.70 million in debt. - The risk-free rate is 5% with a 7.10% market risk premium, and the Capital Asset Pridng Model produces a pre-merger required rate of return on equity rat of 16.36%. - Rapid Route's cost of debt is 7.00% at a tax rate of 35%. - The projections assume that the company will have a post horizon growth rate of 5.00%. - Current total net operating capital is $106.0 million, and the sum of existing debt and debt required to maintain a constant capital structure at the time of acquisition is $29 million. - The firm has no nonoperating assets, such as marketable securitles. With the given information, use the free cash flow to equity (FCFE) approach to calculate the following values involved in the merger analysis. (Note: Round your answer to two decimal places.) The estimated value of Rapid Route's operations after the merger is than the market value of Rapid Route's equity. This means that the wealth of Ropld Route's shareholders will if it merges with Washington rather than remaining as a stand-alone corporation. True or False: Like the corporate valuation model, the FCFE model can be applied only when the capital structure is constant. True False