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Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash tlows of $1.59

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Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash tlows of $1.59 million per year, growing at a rate of 2.6% per year. Goodyear has an equity cost of capital of 8.5%, a debt cost of capital of 6.9%, a marginal corporate tax rate of 36%, and a debt-equity ratio of 2.6. If the plant has average risk and Goodyear plans to maintain a constant debt-equity ratio, what aftor-tax amount must it receive for the plant for the divestiture to be profitable? A divestiture would be profitabie if Goodyear received more than s. million after tax. (Round to one decimal place.)

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