ABC has assets with a book value of R400 000, and liabilities that amount to R180 000. The assets of the company currently generate after tax free cash flows of R64 000 per 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