The Martin Co$.$ is considering the acquisition of Ramaswami Inc. Last year

Ramaswami generated cash flows of $$35,000,000.$ The managers of The

Martin Co$.$ feel that $9\mathrm{.}00\%$ is a reasonable discount rate for the cash flows of

Ramaswami and that the cash flows of the firm will probably grow at $2\mathrm{.}50\%$

into the future. The Martin Co$.$ managers also think that the union with

Ramaswami will generate perpetual annual synergies of $$4,800,000.$ Based on

these assumptions, what is a reasonable price to pay for Ramaswami?