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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 xYZ. The current cash flow from assets for ABC is $10 million. The cash flows are expected to grow at 10 percent per year for the next five years before levelling off to 4 percent for the indefinite future. The cost of capital for xYZ and ABC are 11 percent and 9 percent, respectively. ABC currently has 2.5 million shares of stock outstanding and $20 million in debt outstanding. What is the maximum price per share xYZ should pay for ABC ?(15 points)
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