How to calculate this?

Question 10 O out of 0.5 points Company T has 1 million shares priced at $2.50 each. Company A plans to acquire 50% of shares in T. The change in net operating cash flows expected from the takeover is $500,000 p.a. The cost of capital for A's assets is 10% and 12.5% for T's assets. What is the maximum price per share A should offer T in order to take it over given the aforementioned information? Selected Answer: $8.50 Answers: $5.50 $6.50 $8.50 $7.50