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Orca Industries is considering the purchase of Shark Manufacturing. Shark is currently a supplier for Orca and the acquisition would allow Orca to better control
Orca Industries is considering the purchase of Shark Manufacturing. Shark is currently a supplier for Orca and the acquisition would allow Orca to better control its material supply. The current cash flow from assets for Shark is $ million. The cash flows are expected to grow at percent for the next five years before leveling off to percent for the indefinite future. The costs of capital for Orca and Shark are percent and percent, respectively. Shark currently has million shares of stock outstanding and $ million in debt outstanding.
What is the maximum price per share Orca should pay for Shark? Do not round intermediate calculations and round your answer to decimal places, eg
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