N21 3 A B E F K M G L H 1 2. 3 4 D Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. The current cash flow from assets for Arras is $7.3 million. The cash flows are expected to grow at 5 percent for the next five years before leveling off to 2 percent for the indefinite future. The cost of capital for Schultz and Arras is 9 percent and 7 percent, respectively. Arras currently has 3 million shares of stock outstanding and $25 million in debt outstanding. 5 6 7 8 9 10 11 12 What is the maximum price per share Schultz should pay for Arras? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 13 14 15 Price per share 16 17 18 19 20 21 22 23 24 25 01 02 03 04 Q5 Q6 Q7 Q8 09 Q10 Ready O Type here to search