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Problem 21-7 Merger Gains (LO2) Acquiring Corp. is considering a takeover of Takeover Target Inc. Acquiring has 26 million shares outstanding, which sell for $20

Problem 21-7 Merger Gains (LO2)

Acquiring Corp. is considering a takeover of Takeover Target Inc. Acquiring has 26 million shares outstanding, which sell for $20 each. Takeover Target has 13 million shares outstanding, which sell for $23 each. If the merger gains are estimated at $39 million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders?

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