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The annual after-tax free cash flow from the acquisition of Gayle Style by Frond Fashions is projected to be $8 million. These flows are expected
The annual after-tax free cash flow from the acquisition of Gayle Style by Frond Fashions is projected to be $8 million. These flows are expected to continue for 12 years. No value is placed on cash flows beyond 12 years. If the appropriate risk-adjusted discount rate for the merged firm is 14.50%, what is the maximum amount Frond Fashions should pay to acquire Gayle Style?
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