Question
Moxie Corporation is considering purchasing Regan Company. Projected incremental cash flows will result in a PV of $79.3 million. The appropriate discount rate is 12%.
Moxie Corporation is considering purchasing Regan Company. Projected incremental cash flows will result in a PV of $79.3 million. The appropriate discount rate is 12%. Regan has 10 million shares outstanding and no debt. Regan's current stock price is $18.75. What is the maximum price per share that Moxie should offer?
a. $7.93
b. $8.75
c. $9.52
d. $4.23
e. none of the above
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
