7. What is the maximum amount BAT could have paid for Reynolds and still earned its cost...

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7. What is the maximum amount BAT could have paid for Reynolds and still earned its cost of capital? Recall that BAT acquired the remaining 57.8% of Reynolds that it did not already own. Did BAT overpay for Reynolds based on the information given in the case? Explain your answer. (Hint: Use your answers to questions (1) and (5))

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