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 $260 million. Pulpless has 7 million shares outstanding and zero debt. Pulpless's current stock price is $3.30. What is the maximum price per share that Mondo should offer?
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
17th Edition
0077304454, 978-0077304454
