You have been tasked with evaluating the acquisition of Lindvallen AB$,$ a smaller retail firm, by K$$arsk$$r AB$,$ a large publicly traded corporation. Lindvallen AB reported $16$ million in after$-$tax operating income in the most recent year, with a book value of capital invested in the firm at the beginning of that year standing at $200$ million. The cost of capital for K$$arsk$$r AB is $12\%,$ whereas for Lindvallen AB$,$ it's $9\%.$

Lindvallen AB anticipates its after$-$tax operating income to grow at a rate of $2\%$ annually in perpetuity. K$$arsk$$r AB envisions that through the acquisition, it can enhance the return on capital to $12\%$ on forthcoming investments and reduce Lindvallen's cost of capital to $8\%,$ while maintaining the growth rate at $2\%.$

The task at hand is to estimate the gain K$$arsk$$r AB would achieve by acquiring Lindvallen AB$.$

Round your answer up to two decimal. WRITE $9\mathrm{.}77$ if your answer is $9,77\%$

Now assume that the combined firm will have cost savings of $50$ million $($counting for year three$)$ growing $2\%$ a year in perpetuity, starting in year $4,$ and that the cost of capital is $10\%$ for the combined firm.

Estimate the value of synergy from cost savings.

Round your answer up to NO decimal.

HINT: Multiple $50$ with $1$ plus growth. Then discount

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