LMH Co. wishes to determine the value of Craft Foundry, a firm that it is considering acquiring for cash. LMH Co. wishes to use the CAPM to determine the applicable discount rate to use as an input to the constant growth valuation model. Craft's shares are not publicly traded. After studying the betas of firms similar to Craft that are publicly traded, LMH Co. believes that an appropriate beta for Craft's shares would be 1.25. The risk-free rate is currently 9 percent, and the market return is 13 percent. Craft's historical dividend per share for each of the past six years is given below: FIN3201 / FIN2210 / FIN2211 / FIN2212 / FIN2213 (F) /Page 2 of 11 Year 2008 2007 2006 2005 2004 2003 Dividend per share ($) 2.44 2.28 2.15 1.90 1.75 1.45 Given that Craft is expected to pay a dividend of $2.68 next year, determine the maximum cash price LMH Co. should pay for each share of Craft. (12 marks)