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Ben's Bargain Co . is looking at acquiring Sal's Econo Store in an all cash deal. Ben's Bargains has 2 4 2 , 5 0
Ben's Bargain Co is looking at acquiring Sal's Econo Store in an all cash deal. Ben's Bargains has shares outstanding at $ per share and Sal's, a private company, has expected annual cash flows of $ per year forever Both firms have an cost of capital. With Ben's marketing & sales expertise, they feel would be able to increase Sal's annual cash flows by annually if the firms combine. What is the maximum cash price Ben's Bargain Co should offer?
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