Question: 7. (6 points) Mega Pharma, Inc. (MPI) is considering merging with a smaller, independent company, SuperDrug, Ltd. (SDL). Using the appropriate discount rate of 12%,

7. (6 points) Mega Pharma, Inc. (MPI) is considering merging with

7. (6 points) Mega Pharma, Inc. (MPI) is considering merging with a smaller, independent company, SuperDrug, Ltd. (SDL). Using the appropriate discount rate of 12%, the analysts at MPI have determined that the purchase will increase its annual aftertax cash flow by 5 million indefinitely. SDL's current market price is $50.25, and the firm has 5.5 million shares outstanding. What is the maximum price per share that MPI should offer to purchase SDL

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