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c 2 3 4 5 6 7 8 9 10 11 12 13 PROBLEM SET 3 Extendacare, a national nursing home chain, is considering purchasing a smaller chain, Excelcare Nursing Homes. Extendacare's analysts project that the merger will result in free cash flows to equityholders with a present value of $75.2 million, and they have determined that the appropriate discount rate for valuing Excelcare is 12%. Excelcare has 2 million shares outstanding and no debt. Excelcare's current stock price is $15. What is the maximum price per share that Extendacare should offer? ANSWER