Question: 1. Using the Dividend Growth Model for valuation Companies MAX and MIN are in the same industry and have no debt. Max is planning

1. Using the Dividend Growth Model for valuation Companies MAX and MIN

1. Using the Dividend Growth Model for valuation Companies MAX and MIN are in the same industry and have no debt. Max is planning to acquire MIN. The data for MIN is: Earnings per share Dividends per share Number of shares Share price MIN 3 1 1 million 25 Expected growth in earnings (and dividends) at MIN is 6% which would rise to 8% if owned by MAX even with no new investment. What is the gain from the acquisition?

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