What is each share of insularity worth on a stand-alone


The Insularity Company is being evaluated for a potential acquisition. An analyst has discovered that in Insularity's industry firms are publicly listed at an average (stock) price-to-cash-flow multiple of 13.99. Furthermore, recent acquisitions in the industry have been consummated at an average price-to-cash-flow multiple of 17.44. If Insularity produced cash flow per share of $2.14 in the most recently concluded fiscal year, what is each share of Insularity worth on a stand-alone basis? On a with-synergy basis?

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Financial Management: What is each share of insularity worth on a stand-alone
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