Campbell has 4 million shares outstanding and no debt


Question - Dale Enterprises, a regional hardware chain, is considering purchasing a smaller chain, Campbell Ace. Dale's analysts project that the merger will result in incremental free flows and interest tax savings with a combined present value of $72.52 million, and they have determined the appropriate discount rate for valuing Campbell is 16%. Campbell has 4 million shares outstanding and no debt. Campbell's current price is $16.25. What is the maximum price per share that Dale should offer?

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Accounting Basics: Campbell has 4 million shares outstanding and no debt
Reference No:- TGS02812333

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