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What is the maximum price per share Belmont Co. should pay for Cilla Co. based on the following data for Cilla: PV of future cash
| What is the maximum price per share Belmont Co. should pay for Cilla Co. based on the following data for Cilla: PV of future cash flows $900 million, 50 million outstanding shares, no debt, and discount rate of 10%. Cilla's current stock price is $20. What is the maximum price per share that Belmont should offer? |
| $16.36 |
| $18.00 |
| $40.91 |
| $45.00 |
| None of the above |
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
