Nike:

Debt: 300,000 bonds. Coupon rate of 4.0%. Current price of 120% of par. Bonds have 20 years to maturity and a par value of $1,000. Semiannual compounding.

Equity: 2.7 million shares of common stock at $130 per share. Beta is 1.19.

Market: The corporate tax rate is 21%. Expected market return is 9.5%. Risk- free rate is 0.02%.

Nike is considering purchasing Adidas. Adidas currently has debt outstanding with a market value of $15 million. The EBIT for Adidas next year is projected $13 million. EBIT is expected to grow at 9% per year for the next five years before slowing to 2% in perpetuity. Change in Net Working Capital, Capital Spending, and Depreciation as a percentage of EBIT are expected to be 5%, 4%, and 6%, respectively. Adidas has 12.5 million shares outstanding and the tax rate is 21%.

1) What is the maximum price per share Nike should be willing to pay for Adidas?