Please use the following information and calculate the maximum per-share price Firm Hypothetical should offer to GCC, assuming Firm Awesome has 200,000 shares outstanding. Firm Hypothetical is evaluating the possible acquisition of regional company Awesome. Firm Hypothetical's analysts project the following post-merger data for the local Firm Awesome (in thousands of dollars): If the acquisition is made, it will occur on January 1, 2025. All cash flows shown in the income statements are assumed to occur at the end of the year. Firm Awesome currently has a capital structure of 40% debt, but Firm Hypothetical would increase that to 50% if the acquisition were made. Firm Awesome, if independent, would pay taxes at 20%, but its income would be taxed at 25% if it were consolidated. Firm Awesome's current market-determined beta is 1.40, and its investment bankers think that its beta would rise to 1.50 if the debt ratio were increased to 50%. The cost of goods sold is expected to be 65% of sales, but it could vary somewhat. Depreciation-generated funds would be used to replace worn-out equipment, so they would not be available to Firm Hypothetical's shareholders. The risk-free rate is 3\%, and the market risk premium is 8%. Firm Awesome is expecting to grow at a rate of 7% after 2028. Assume that Firm Awesome's net income is a good proxy for the cashflows. $7.38 $4.43 $7.20 $4.20 There is inconsistency in the information and additional work is required before reaching any sound conclusions. Please use the following information and calculate the maximum per-share price Firm Hypothetical should offer to GCC, assuming Firm Awesome has 200,000 shares outstanding. Firm Hypothetical is evaluating the possible acquisition of regional company Awesome. Firm Hypothetical's analysts project the following post-merger data for the local Firm Awesome (in thousands of dollars): If the acquisition is made, it will occur on January 1, 2025. All cash flows shown in the income statements are assumed to occur at the end of the year. Firm Awesome currently has a capital structure of 40% debt, but Firm Hypothetical would increase that to 50% if the acquisition were made. Firm Awesome, if independent, would pay taxes at 20%, but its income would be taxed at 25% if it were consolidated. Firm Awesome's current market-determined beta is 1.40, and its investment bankers think that its beta would rise to 1.50 if the debt ratio were increased to 50%. The cost of goods sold is expected to be 65% of sales, but it could vary somewhat. Depreciation-generated funds would be used to replace worn-out equipment, so they would not be available to Firm Hypothetical's shareholders. The risk-free rate is 3\%, and the market risk premium is 8%. Firm Awesome is expecting to grow at a rate of 7% after 2028. Assume that Firm Awesome's net income is a good proxy for the cashflows. $7.38 $4.43 $7.20 $4.20 There is inconsistency in the information and additional work is required before reaching any sound conclusions