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Mega Pharma, Inc. (MPI) is considering merging with a smaller, independent company, SuperDrug, Ltd. (SDL). Using the appropriate discount rate of 12%, the analysts at

Mega Pharma, Inc. (MPI) is considering merging with a smaller, independent company, SuperDrug, Ltd. (SDL). Using the appropriate discount rate of 12%, the analysts at MPI have determined that the present value of the total incremental cash flows resulting from the possible merger would be $335.665 million.SDL's current market price is $50.25, and the firm has 5.5 million shares outstanding.What is the maximum price per share that MPI should offer to purchase SDL?

a.$61.03

b.$57.78

c.$55.25

d.$55.94

e.$6.08

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