ABC has assets with a book value of $400 000, and liabilities that amount to $180 000. The assets of the company currently generate after tax free cash flows of $64 000/year. The cash flows are expected to grow at a rate of 12% per year for the next 5 years. Thereafter the sustainable growth rate in cash flows is expected to be 8% per year. The firms cost of capital is 14%. The firms liabilities are fairly valued.

Compute, using the discounted cash flow analysis, the minimum price that XYZ must offer ABCs shareholders.