You are leading a team on a M&A deal. Suddenly your analyst has disappeared and you have the following unfinished spreadsheet. The acquirer and the target are assumed to have zero growth. Now it is up to you to finish this job. Acquirer Taet Combined Sales 400 100 500 Operating Expenses 200 60 260 20 Annual cost savings EBIT EBIT1 -t) Depreciation 200 120 40 30 ?1? 40 24 30 30 Gross Plant & Equipment Change in Working Capital 10 Free Cash Flow to Firm 120 19 2? Discount rate 8.00% 9% 1500 211.111 50 8% Firm Value ?3? 400 Long term debt 450 Equity value 100 161.111 ?4