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V ) XYZ Industries is considering the purchase of ABC Company. ABC is currently a supplier for x Y Z . The current cash flow
V XYZ Industries is considering the purchase of ABC Company. ABC is currently a supplier for The current cash flow from assets for ABC is $ million. The cash flows are expected to grow at percent per year for the next five years before levelling off to percent for the indefinite future. The cost of capital for and ABC are percent and percent, respectively. ABC currently has million shares of stock outstanding and $ million in debt outstanding. What is the maximum price per share should pay for ABC points
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