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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 cost of capital for Orca and
Shark is 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?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
Price per share
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