Firm Valuation

Schultz industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. The current cash flow form assets for Arras is $6.8 million. The cash flows are expected to grow at 8% for the next five years before leveling off to 4% for the indefinite future. The cost of equity for Schultz is 12% and its after-tax cost of debt is 6%. Schultz has a debt-equity ratio of 1. Based on the assessment of Schultz, the cost of capital for Arras is 2% higher. Arras currently has 2.4 million shares of stock outstanding and $25 million in debt outstanding. What is the maximum price per share Schultz should pay for Arras?