Washington Company is considering an acquisition of Purple Turtle Corp. Washington Company estimates that acquiring Purple Turtle will result in incremental value for the firm. The analysts involved in the deal have collected the following information from the projected financial statements of the target company. Purple Turtle is a publidy traded company, and its market-determined pre-merger beta is 1:60, You aiso have the following information about the comparr and the projected statements. - Purble Turtle currently has a $12.00 million market value of equity and 57.80 million in debt. rate of return on equity rat of 10.26 : - Purple Turtle cost of debt is 7,005 at x cax ratu of 705 . + The biclections asume that the company wil have a post-horicon orouth rate of 4 . go: - Current total net operating capital is $102.0million, and the sum of existing debt and debt required to maintain a constant capital structure at the time of acquisition is $31 million. - The firm has no nonoperating assets, such as marketable securities. With the given information, use the free cash flow to equity (FCFE) approach to calculate the following values involved in the merger analysis: (Note: Round your answer to two decimal places.) The estimated value of Purple Turtle's operations after the merger is than the market value of Purple Turtle's equity. This means that the wealth of Purple Turtie's shareholders will if it merges with washington rather than remaining as a stand-alone corpocation. The or False: The horizon value in the FCFE appcoact is different from the horizon value in the adjusted present value (APV) approach. The herizon value in the FCFE approach is only for equity, whereas the horizon value in the APV approach is for the total value of operations. Fatse The