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Would you kindly answer the following question( Urgent) QUESTION 12 Firm B plans to acquire firm T. Both firms have no debt. B believes the
Would you kindly answer the following question( Urgent)
QUESTION 12
- Firm B plans to acquire firm T. Both firms have no debt. B believes the acquisition will increase its total after-tax annual cash flow by $1.6 million for the next three years and then it decreases to 1.2 million, indefinitely. The appropriate discount rate for the incremental cash flows is 12%.
- The pre-merger information about firm B and target firm T is:
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