ROYCE GLOVE GROUP has an estimated cost of capital of 10 per cent in which the management believe is applicable to the valuation of Mederis once it is acquired and becomes part of the group. Assume a tax rate of 20 per cent is applicable for both ROYCE PHARMA and Mederis. ROYCE GLOVE has 10 million ordinary shares in issue and the current market value of a share is $12.75.

Year 0	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
Free Cash Flow		2,252,816	2,467,956.80	2,693,854.64	3,731,047.38	5,230,095.74	5,230,095.74

Total number of share outstanding= 2,000,000 shares

Fair value per share (P0)= $ 19.69

Average PE ratio= 15.45

Earning per share (EPS) = 1.909

Fair value per share (P0)= $29.49

Sales Multiple

PS of Comfort Glove = 12.5 = 0.4

PS of HartaLe = 11.7 = 0.5882

PS of SuperM = 12.9 = 0.3448

PS of InGlove = 10.8 = 1.25

PS of Good Glove = 11.2 = 0.8333

PS of Rubberex = 12.8 = 0.3571

Average PS ratio= 0.6289

S0 = 25.0834

Fair value per share (P0)= $15.77

Average PBV ratio= 3.6

Book value of the company = $ 10,125,900

Book Value per share (BV0)= 5.063

Fair value per share (P0) = $18.23

Dividend Multiple

PD for Comfort Glove = 12.0100 = 50

PD for HartaLe = 12.2100 = 45.45

PD for SuperM = 11.0100 = 100

PD for InGlove = 11.9100 = 52.63

PD for Good Glove = 10.6100 = 166.67

PD for Rubberex = 10.1100 = 1000

PDPS= 235.79

DPS0 = 0.25

Fair value per share (P0) = $ 58.95

Book value of company = $ 10,125,900

Fair value per share (P0) = $ 5.063

Market value of premise = $ 50,346,500

Total assets = $ 61,846,000

Total liabilities = $ 11,720,100

Total value of the company = $ 50,125,900

Fair value per share (P0) = $ 25.06

Question:

Based on above valuations and any other possible factors, how much per share of Mederis do you think should ROYCE GLOVE be paying in order to acquire the company? Explain and justify your reasoning (around 500 words) (8 marks)