Acquiring Corp. is considering a takeover of Takeover Target Inc. Acquiring has 10 million shares outstanding, which sell for $40 each. Takeover Target has 5 million shares outstanding, which sell for $20 each. If the merger gains are estimated at $25 million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders?

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Acquiring Corp. No. of outstanding shares Selling price per share 10.00 million S 40.00 akeover 1arget Inc No. of outstanding shares Selling price per share 5.00 million S 20.00 Estimated merger gains S 25.00 million