(TCO E) Using the Discounted Cash Flow method and the formula approach(equation 9.3, p. 249) of the textbook, calculate the maximum price that should be paid for target company Tyler Corporation.Here the company has 10 years of supernormal growth and then no growth. (15 pts. for PV of operating cash flows, and 15 pts. for the PV of horizon value.)

Given information re Tyler Corporation (all $ Amounts in Millions):

Ro:Initial Year Revenues:$1,000

n = Number of growth years:10

m = Net Operating Income Margin20.0%

T = Tax Rate40.0%

g = Growth Rate20.0%

I = Investment Rate10.0%

k = Cost of Capital10.0%

h = Calculation Relationship = [(1 + g)/(1 + k)] 10.0909