Question
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?
| A. $16.36 |
| B. $18.00 |
| C. $40.91 |
| D. $45.00 |
| E. None of the above |
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Finance Accumulation And Monetary Power
Authors: Daniel Woodley
1st Edition
0367338556, 978-0367338558
