What is the maximum price that could be paid for moonshine


Sunshine Inc wants to acquire Moonshine Inc. because it feels the “whole can be worth more than the sum of the parts”. Savings from the merger are estimated to be a one-time after-tax benefit of $100 million. Moonshine has 5 million shares outstanding at the current market price of $50/share. What is the maximum price that could be paid for Moonshine stock?

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Financial Management: What is the maximum price that could be paid for moonshine
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