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Two identical firms have yearly after - tax cash flows of $ 2 1 , 0 0 0 , 0 0 0 each, which are
Two identical firms have yearly aftertax cash flows of $ each, which are expected to continue into perpetuity. If the firms merged, the aftertax cash flow of the combined firm would be $ Assume a cost of capital of How much synergies does the merger generate?
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