Problem $21-7$ Merger Gains $($LO$2)$

Acquiring Corporation is considering a takeover of Takeover Target Incorporated. Acquiring has $22$ million shares outstanding, which

sell for $$20$ each. Takeover Target has $11$ million shares outstanding, which sell for $$10$ each. If the merger gains are estimated at $$22$

million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders?

Highest price

per share