Happy Times, Inc., wants to expand its party stores into the Southeast. In order to establish an immediate presence in the area, the company is considering the purchase of the privately held Joes Party Supply. Happy Times currently has debt outstanding with a market value of $200 million and a YTM of 6 percent. The companys market capitalization is $440 million, and the required return on equity is 11 percent. Joes currently has debt outstanding with a market value of $33.5 million. The EBIT for Joes next year is projected to be $13.0 million. EBIT is expected to grow at 8 percent per year for the next five years before slowing to 4 percent in perpetuity. Net working capital, capital spending, and depreciation as a percentage of EBIT are expected to be 7 percent, 13 percent, and 6 percent, respectively. Joes has 2.15 million shares outstanding and the tax rate for both companies is 30 percent.

What is the maximum share price that Happy Times should be willing to pay for Joes?