What is the highest price that Google should be willing to pay to complete this acquisition? Your answer should be rounded to two decimal places.

1. Mergers and Acquisition Question Question Group 6 Questions In late 2009, Google acquired Admob, a company that displays advertisements on mobile phones, for $750 million. Let's suppose that Google's managers determined that Admob's stand-alone operations were worth $400 million at the time. Moreover, Google determined that the acquisition would yield the combined firm both cost savings and additional advertising revenues by making better use of Admob's proprietary technology and Google's new Android operating system. Specifically, assume that Google's projections for how these synergies would affect the combined firm's free cash flows (FCFs) over the next five years are those given below. You should assume that these additional FCFs will continue to grow at 2 percent a year after 2014, that Year 0 is 2009 and that the appropriate discount rate for Google to use in valuing the incremental cash flows from this merger is 15 percent. Use this information to answer the below questions