Question
The equity owners of Mondo Cult Inc. are considering purchasing Pulpless.com Inc, a small online bookstore. Mondo's analysts believe that the merger will result in
The equity owners of Mondo Cult Inc. are considering purchasing Pulpless.com Inc, a small online bookstore. Mondo's analysts believe that the merger will result in incremental free flows and tax savings with a combined net present value of $470 million.Pulpless has 2 million shares outstanding and zero debt. Pulpless's current stock price is $6.24. What is the maximum price per share that Mondo should offer?
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Hospitality Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
2nd Edition
9780470598092, 470083603, 978-0470083604
