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Dunbar LTC , a national nursing home chain, is considering purchasing a smaller chain, Eastern Nursing Homes. Dunbar's analysts project that the merger will result
Dunbar LTC a national nursing home chain, is considering purchasing a smaller chain, Eastern Nursing Homes. Dunbar's analysts project that the merger will result in free cash flows to equityholders with a present value of $ and they have determined that the appropriate discount rate for valuing Eastern is percent. Eastern has shares outstanding and no debt. Eastern's current price is $ What is the maximum price per share that Dunbar should offer?
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