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The following data apply to the next six questions: Silver Enterprises is considering making an offer to purchase Gold Enterprises. Silver's Vice President of finance

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The following data apply to the next six questions: Silver Enterprises is considering making an offer to purchase Gold Enterprises. Silver's Vice President of finance has collected the following information: Silver Enterprises Gold Enterprises $1,050,000 $470,000 Dividends Earnings $4,200,000 $960,000 Price-earnings ratio (P/E) 14.5 10 Shares Outstanding 1,500,000 750,000 Silver Enterprises also knows that securities analysts expect the earnings and dividends of Gold Enterprises to grow at a constant rate of 4% each year. Silver Enterprises management believes that the acquisition of Gold Enterprises will provide the firm with some economies of scale that will increase this growth rate to 6% per year. What is the most Silver Enterprises should be willing to pay in cash per share for the stock of Gold Enterprises? O a. $19.15 O b. $20.33 O c. $20.19 O d. $21.49 Oe. None of the above

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