Raymond Supply, a national hardware chain, is considering purchasing a smaller chain. Strauss & Glazer Parts (SGP). Raymond's analysts project that the merger will result in the following incremental free cash flows, tax shields, and horizon values: Year Free cash flow S1 Unlevered horizon value Tax shield Horizon value of tax shield Assume that all cash flows occur at the end of the year. SGP is currently financed with 30% debt at a rate of 10%. The acquisition would be made immediately, and if it is undertaken. SGP would retain its current $15 million of debt and issue enough new debt to continue at the 30% target level. The interest rate would remain the same. SGP's pre-merger beta is 2.0, and its post-merger tax rate would be 34%. The risk-free rate is 8% and the market risk premium is 4%. Using a discount rate of 14.2%, what is the overall value of the target firm (SGP) and the value of SGP's equity to Raymond