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Distinct Wines Importers is looking at acquiring Wine Tasting Adventures in an all cash deal. Distinct Wines has 2 1 0 , 5 0 0
Distinct Wines Importers is looking at acquiring Wine Tasting Adventures in an all cash deal. Distinct Wines has shares outstanding at $ per share and Wine Tasting Adventures, a private company, has expected annual cash flows of $ per year forever Both firms have a cost of capital. Distinct Wines anticipates that with their marketing & sales expertise, they would be able to increase the target's annual cash flows by annually if the firms combine. What is the maximum cash price Distinct Wines should offer?
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