Giant Video Productions is considering the acquisition of Tiny Films Co. Last year, Tinys cash flow from assets amounted to $70,000. Its future cash flows are expected to grow at a rate of 16% over the next 2 years, after which they will grow indefinitely at a constant rate of 7%. Tiny has 100,000 shares of stock outstanding and the market value of its debt is $450,000. Its cost of capital is 11%, whereas Giants cost of capital is 7%. What is the highest bid price that Giant should offer per share of Tiny?

Answer choices:

$21.95

$19.09

$15.42

$17.45

$13.20